Government Retention of Personal Injury Lawyers: H.F. 563 (2012)


Provides that a state shall not enter into a contingency

Provides that a state shall not enter into a contingency fee contract with a private attorney unless the Attorney General makes a written determination prior to entering into the contract, that contingency fee representation is both cost-effective and in the public interest.  Limits the aggregate contingency fee a private attorney can receive to 25% of any recovery up to $10 million, 20% of any recovery between $10-$15 million, 15% of any recovery between $15-$20 million, 10% of any portion between $20-$25 million, and 5% of any recovery that exceeds $25 million.  In no event shall the aggregate contingency fee of any recovery exceed $50 million.  Allows the caps to be waived if approved by the majority of the state Executive Council (Governor, Secretary of State, Auditor, Treasurer, and Secretary of Agriculture).  Requires the contract, payments made under the contract, and the attorney general’s written determinations to be posted on the attorney general’s website.

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