BP BHEAD INT H

AN ACT Relating to a sliding scale cap on attorneys' contingent fees; and adding a new section to chapter 4.24 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 4.24 RCW to read as follows:

(1) In any action based on fault seeking damages for personal injury or property damage, an attorney shall not contract for or collect a contingency fee for representing any person seeking such damages in excess of the following limits:

(a) One-third of the first three hundred thousand dollars recovered;

(b) One-quarter of the next two hundred thousand dollars recovered; and

(2) The limitations in subsection (1) of this section shall apply regardless of whether the recovery is by settlement, arbitration, or judgment or whether the person for whom the recovery is made is a responsible adult, an infant, or a person of unsound mind.

(3) If periodic payments for future damages are awarded, the court shall determine the present value of those payments and include the present value of future periodic payments in computing the total award on which attorney's fees are calculated.

(4) The percentages specified in subsection (1) of this section shall be applied to the net sum recovered after deducting from the total amount recovered an amount equal to the total expenses and disbursements for expert testimony and investigative or other services properly chargeable to the enforcement of the claim or prosecution of the action. In computing the fee, the costs as taxed, including interest upon a judgment, shall be considered part of the amount recovered. For the following or similar items there shall be no deduction in applying the percentages: Liens and assignments or claims in favor of hospitals, for medical care and treatment by doctors and nurses, or of self-insurers or insurance carriers.

(5) If an attorney believes in good faith that the fee schedule fails to provide adequate compensation due to extraordinary circumstances, then the attorney may apply for greater compensation. Application may be made upon affidavit with written notice and an opportunity to be heard to the party or parties to the contract and other persons holding liens or assignments on the recovery. Application shall be made (a) to the superior court judge to whom the action had been sent for trial, or (b) if the action had not been sent to trial, then to the presiding judge in the county in which the action had been filed, or (c) if no action had been filed, then to the superior court presiding judge in the county in which the attorney has an office.

Upon application, if extraordinary circumstances are found to exist and without regard to the consent of the other party or parties to the contract, the court may fix as reasonable compensation for legal services rendered an amount greater than that specified in the schedule. If the application is granted, the court shall make a written order and briefly set forth the reasons for granting the greater compensation. A copy of the order shall be served on all persons entitled to receive notice of the application.

(6) In determining the reasonableness of the parties' attorneys' fees upon application under subsection (5) of this section, the court shall consider the following:

(a) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(b) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(d) The amount involved and the results obtained;

(e) The time limitations imposed by the client or by the circumstances;

(f) The nature and length of the professional relationship with the client;

(g) The experience, reputation, and ability of the lawyer or lawyers performing the services; and

(h) Whether the fee is fixed or contingent.