Is the Contingency Fee Structure in Danger?
Contingency fee structures have served as the backbone for many successful personal injury claims. However, a new 2026 ballot amendment proposed by the well-known rideshare app, Uber, is threatening to change the caps on contingency fees for rideshare accidents and similar incidents.
Keep reading to learn more about what this could potentially mean for the presentation of accident claims, compensation, and other consequences.
BD&J California rideshare attorneys are ready to fight on behalf of clients against large companies who try to put a cap on justice.
Key Takeaways
- The contingency fee system allows attorneys to advance case costs for their clientele, negotiate down medical bills, and successfully bring forward a claim
- An Uber-backed constitutional amendment could put a cap on the contingency fees from auto crashes
- This cap could also change the way medical expenses are valued, cost taxpayers, and make it harder for injured individuals to reclaim compensation in a lawsuit
- BD&J rideshare attorneys will fight for you after an accident
What Are Contingency Fees?
Contingency fees are a method of payment for legal representation where an attorney only receives payment after a case has been successfully resolved. The nature of these fees is always presented to a client in a written agreement and is typically only used in certain branches of law.
The contingency fee structure is beneficial for clients because it:
- Allows them to pursue legal compensation for no upfront costs
- Incentivizes attorneys as they’re only getting paid if they win
- Can save time and money during the claim process
- Eliminates the need to pay attorney fees if a case is lost
- Allows for fair competition and resources when going against larger insurance companies or legal teams
While contingency fee structures may vary, the typical amount an attorney recovers through this payment agreement can be anywhere between 25%-40% of the settlement.
Uber-Funded Contingency Fee Ballot Measure Could Change Contingency Fee Structures
A new Uber-backed amendment to the constitution is threatening to uproot the traditional contingency fee structure and put a cap on it. The “Protecting Automobile Accident Victims from Attorney Self-Dealing” Act may be introduced in the November 2026 ballot if it gets enough signatures.
This amendment proposes:
- Car accident victims are required to obtain at least 75% of damages recovered
- Strictly capping attorney contingency fees at 25%
- Banning referral agreements between personal injury law firms and medical providers
- Enforce ‘transparency’ of medical costs to avoid ‘inflation’ of damages or ‘phantom medical damages’ stemming from working with more expensive medical providers
While higher victim compensation may sound appealing on paper, the problem is that the cap on contingency fees will make it more difficult for injured victims to find a law firm willing to represent them for a capped contingency fee. Attorneys advance case costs out of their own pockets, using contingency fees to be reimbursed for time and resources put into each case.
If there is a cap on contingency fees, law firms may question whether taking on a case would be financially feasible, leading to fewer opportunities for representation for victims of vehicle accidents. The higher compensation stated in the ballot measure becomes an issue of smoke and mirrors when a victim can’t find the proper representation anyway.
What Cases Could Be Affected?
This proposed initiative would affect people involved in all car accidents, not just rideshare accidents. It could also start to affect some product defect cases surrounding vehicles.
Less Liability in Court Means More Product Defects
Another issue arising from this proposed ballot measure is pretty straightforward: fewer court cases mean fewer identified product defects. Defective vehicle parts, like faulty brakes and engines, are typically discovered during personal injury cases.
A halt to these claims means undisclosed product defects in vehicles or other equipment, creating more risks on the road.
What Are the Latest Developments with This Ballot Measure?
Organizations like the Consumer Attorneys of California (CAOC) and other groups in California’s legal community are fighting back. Measures against Uber are being proposed as well by some legal groups, specifically focusing on the need for rider background checks and sexual assault incident reporting.
The ballot measure for automobile accident victims is still collecting signatures and must submit 874,641 by June 8th, 2026, to be presented on the November ballots.
This Isn’t the First Attempt by the Rideshare Company for this Amendment
In 2024, Uber presented a similar ballot measure in Nevada, looking to reduce contingency fees for attorneys by 20%. But in 2025, this ballot initiative was blocked by the Nevada Supreme Court due to confusing language that could further mislead voters.
Are Rideshare Trips Safe?
While this proposed measure accounts for all types of car accidents, there’s been a particular question about the safety of rideshare trips. This also considers the implications of a popular rideshare platform introducing the measure to begin with.
Like with any vehicle accident, rideshare accidents can happen due to:
- Distracted driving
- Speeding
- Impaired driving
- Failing to yield
- Weather conditions
If you were involved in a rideshare accident, the California rideshare attorneys from BD&J are here to listen to your story.
Frequently Asked Questions
How Long Do I Have to File a Rideshare Accident Claim?
You have two years from the date of the accident to file a lawsuit.
Can I File a Claim if My Accident Was 3 Years Ago?
Unfortunately, no. Once the statute of limitations passes, you’re unable to recover compensation for an accident.
What Evidence Do I Need for a Personal Injury Claim?
Some evidence that plaintiffs usually present in a personal injury claim includes photos and videos of the accident, medical records highlighting injuries and proposed treatments, medical invoices, car repair expenses, and the contact information of other witnesses to the accident.
What if I Can’t Afford to File a Lawsuit After an Accident?
This is where contingency fees make a big difference in advancing personal injury claim. Through contingency fees, the attorneys at BD&J advance all case costs to clients and ultimately recover attorney fees from the settlement amount after a case resolves.
This means no fees until we win your case*.
Will I Be Able to Recover Lost Wages in an Accident Claim?
Absolutely, just be sure to provide pay stubs and medical records that verify your employment and your recovery timeline.
Why Are Contingency Fees Used for Personal Injury?
Contingency fees allow vulnerable victims who don’t have the resources to pay legal fees upfront to still seek justice in the form of compensation. Most people can’t pay out of pocket for legal representation after an accident, especially with expenses like vehicle repairs, medical costs, etc.
When Do I Need to Speak with the California Rideshare Attorneys from BD&J?
Speak with our California rideshare attorneys as soon as you’re ready to file a lawsuit for compensation.
Does BD&J Provide Consultations with Their Attorneys?
Yes! You can schedule a free consultation with one of our attorneys by completing our online form or calling 855-906-3699.
How To Collect Evidence for an Accident Claim
- Keep all medical documentation. – Request copies of medical records that highlight your injuries and possible treatment plans.
- Have copies of any photos or videos documenting the accident. – This is essential to show the environment at the time of the accident, and if you have dashcam footage, the events leading to and during the accident.
- Speak to your employer about verifying your employment. – A letter from your employer can verify your position, as well as prove that you were unable to work due to injuries.
- Talk to a California rideshare accident lawyer. – Don’t be intimidated by rideshare companies or other parties and let a rideshare accident attorney help you in the fight for compensation.
California Attorneys Not Intimidated by Big Companies
While a new Uber-backed ballot measure encourages larger victim compensation and caps contingency fees, this can ultimately spell trouble for vulnerable drivers and passengers seeking compensation through a claim.
However, this ballot measure is still being petitioned, and as past initiatives show, only time will tell if this measure actually appears on November ballots this year.
While that is still up in the air, rideshare and vehicle accidents continue to happen every day. BD&J California rideshare attorneys are here to answer your questions and start a claim 24/7.
Connect with a BD&J team member now!