As reported in POLITICO, a new ballot measure filed in California for the November 2026 election seeks to reform how attorney fees and medical billing are handled in automobile collision cases — an effort that will ensure accident victims keep more of their court awards and prevent exploitation by aggressive billboard lawyers.
The proposal, titled the “Protecting Automobile Accident Victims from Attorney Self-Dealing Act,” is designed to “crack down” on what proponents “argue are predatory legal strategies responsible for inflating insurance payouts and sticking victims with exorbitant medical bills,” according to POLITICO’s report.
Under the proposed initiative, the measure would:
- Cap attorney fees at 25 percent in auto collision lawsuits, which would help ensure victims retain a majority share of their settlement.
- Ban attorneys from referring clients to medical providers with whom they have a financial or familial conflict of interest, helping to close loopholes for self-dealing or referral kickbacks.
- Crack down on “phantom damages,” where lawyers encourage clients to visit expensive medical providers and avoid using insurance to inflate the cost of injuries.
By putting clear limits on attorney fees and curbing the kind of self-dealing that has long driven up costs, this initiative represents a step in the right direction for consumers. For too long, billboard lawyers have profited from a system that rewards inflated claims and hidden financial relationships at the expense of real victims.
Reforms like these would help ensure that accident victims, not their lawyers, receive the compensation they deserve, while also helping to lower insurance costs and restore fairness to California’s legal system.
If you hired a personal injury attorney and felt exploited, mistreated, or misled by their actions, PACT encourages you to share your story with us. Your experience can help shine a light on unethical practices and promote greater accountability among personal injury attorneys. Click here to share your story.