Attorney’s fees: book accounts.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill increases the maximum attorney’s fees that can be awarded in lawsuits involving ‘book accounts’ – contracts for goods, services, or moneys – to $1,600 for accounts used for personal or family purposes and $1,200 for all other accounts. It also allows a prevailing party to recover 25% of the principal obligation owed on the contract, and includes provisions regarding when attorney’s fees can be imposed and excludes certain types of financial institutions from liability.
Key provisions
- Increases maximum attorney’s fees for book accounts to $1,600 (personal/family) and $1,200 (other).
- Allows prevailing parties to recover 25% of the principal obligation owed.
- Requires written agreement between parties for fees to be imposed.
- Excludes insurance companies from liability for attorney’s fees.
- Excludes financial institutions (banks, credit unions, lenders) from liability.
- Applies to contracts entered into on or after January 1, 1987.
- Provides for attorney’s fees for the party against whom the obligation was asserted if they have no obligation.
Who is affected
- Individuals with book account contracts
- Financial institutions (excluding insurance companies)
- Lawyers
- Courts
- Consumers who have entered into book account contracts
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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