Report Title:

Tort Actions; Attorney's Fees

 

Description:

Amends the law relating to attorneys' fees in tort actions to limit attorneys' fees, expert witness fees, court costs, and litigation expenses to a combination of not more than 25% of the party's recovery.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

898

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TORT REFORM.

 

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

SECTION 1. The legislature finds that the contingency fee agreement has been abused by attorneys to deprive deserving parties of their just compensation for their damage claims. Something is drastically wrong with the legal system when the recovery of a damaged claimant is substantially reduced by "reasonable" attorneys' fees, expert witness fees, court costs, and litigation expenses.

Therefore, the purpose of this Act is to limit attorneys' fees, expert witness fees, court costs, and litigation expenses to a combination totaling not more than twenty-five per cent of the party's recovery, whether by judgment, award, or settlement.

SECTION 2. Section 607-15.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§607-15.5[]] Attorneys' fees in tort actions. (a) In all tort actions in which a judgment is entered by a court of competent jurisdiction, attorneys' fees for both the plaintiff and the defendant shall be limited to a reasonable amount as approved by the court having jurisdiction of the action. In any tort action in which a settlement is effected, the plaintiff or the defendant may request that the amount of their respective attorneys' fees be subject to approval of the court having jurisdiction of the action.

(b) Notwithstanding subsection (a) or any other law to the contrary, in cases where the party is represented by an attorney under a contingency agreement, the combination of attorneys' fees, expert witness fees, court costs, and litigation expenses shall not total more than twenty-five per cent of the party's recovery, whether by judgment, award, or settlement."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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