Important Nevada Medical Malpractice Law Changes Beginning in 2024

Nevada law determines the legal guidelines for criminal and civil cases within the state. Like many other states, Nevada limits the compensation victims can receive for non-economic damages from medical malpractice cases. Nevada attorneys and doctors have spent decades negotiating changes to Nevada’s medical malpractice laws and reached an agreement that impacts future medical malpractice settlements.

AB404

AB4040 was introduced in March 2023 and became law on June 15, 2023. The increases take effect January 1, 2024. AB404 applies changes to Nevada’s medical malpractice laws that raise the damages caps for victims of medical malpractice. AB404 also limits the attorney fees lawyers can charge for medical malpractice cases.

What does this law change?

A 2004 referendum set caps on the amount of non-economic damages Nevada medical malpractice victims could seek from a lawsuit. AB404 lifts those caps, increasing the compensation victims can receive for non-economic damages. 

In addition to enabling victims to seek more damages, AB404 ensures victims will keep more of the damages they receive. AB404 also limits how much compensation personal injury attorneys can receive from medical malpractice settlements. 

AB404 also impacts the statute of limitations for medical malpractice claims. This law extends the time available to file a suit in some cases. 

Increases in cap damages

Since the 2004 referendum, $350,000 was the maximum amount of non-economic damages victims could receive in medical malpractice cases. Non-economic damages are damages that compensate victims for the personal and emotional toll of their injuries and include compensation for the following:

• Anxiety
• Depression
• Loss of intimacy
• Pain and suffering
• Trauma

AB404 increases the maximum damages cap by $80,000 annually. The increases begin January 1, 2024, and continue through January 1, 2028. These annual increases will bring the damages cap to $750,000. At that time, a new system for caps will take effect. Beginning January 1, 2029, the damages cap will increase by 2.1% annually. 

AB404 also requires transparency. For the next two decades, the state’s supreme court must publish the amount of non-economic damages victims receive from cases involving negligence by medical professionals. 

Changes to Nevada’s statute of limitations for medical malpractice 

The statute of limitations is a legal timer that applies to civil and criminal cases. The time given to take legal action depends on the case type. Before AB404, Nevada required medical malpractice victims to file cases within three years of the malpractice or one year of the discovery date. 

The 36-month deadline from the date of malpractice still applies. However, AB404 extends the filing deadline for those filing after discovering the malpractice. These plaintiffs now have 24 months to file instead of 12. 

Flat fees for attorneys in medical malpractice cases

AB404 curtails the percentage of settlements lawyers can take for their legal fees after reaching a settlement or winning a judgment through a lawsuit. Before this law, lawyers could charge different percentages based on the amount their client received. For example, lawyers could charge 40% of a $50,000 settlement, allowing them to take $20,000 in legal fees and leaving the victim with $30,000 in compensation. The legal fee limits were as follows:

Settlement amount	Legal fee limits
The first $50,000	40%
$50,001 to $100,000	33.3%
$100,001 to $600,000	25%
$600,001 and up	15%

AB404 eliminates the legal fee limits for settlement amounts and caps contingency fees at 35%, regardless of the settlement amount.

Benefits of the medical malpractice law change 

Medical malpractice victims benefit from AB404 in the following ways:

1. Calculating legal fees and understanding how much of their settlement they’ll keep is easier
2. Victims can receive adequate compensation that accounts for inflation costs
3. Victims can seek damages that compensate for the emotional toll suffered because of their injury

Lawyers benefit from AB404 because they can receive higher fees for complex, time-consuming cases that result in larger settlements.

Medical professionals benefit from AB404 because it introduces gradual increases and maintains a cap on damages. Medical malpractice awards can skyrocket past the $100 million mark without the cap.

How a medical malpractice lawyer can help you 

Your medical malpractice attorney can determine if there are legal grounds to pursue a medical malpractice case. Our legal team investigates cases, prepares the legal paperwork, handles negotiations, and uses trial precedents to fight for victims of medical malpractice to receive the maximum damages available. We represent medical malpractice victims on a contingency fee basis. This means you only pay legal fees if we win your case. 

Our legal team will advocate for you during each stage of the legal proceedings, explain your options, and ensure you make informed decisions about settlement offers. You’ll never be alone in your legal journey. We’ll fight for you to receive the justice you deserve. 

Sources:

AB404. (2023). 

AB 404 Nevada Assembly Bill. (2023). 

Election win puts doctors in the waiting room. (2004). 

Mueller, T. et al. (2023). Health care providers, trial lawyers reach deal to raise medical malpractice damages cap.