The Nevada Supreme Court recently reversed a lower court's decision regarding attorney fees in the case of Jesse Castillo vs. Atkinson Watkins & Hoffmann, LLP, docket number 89421. This ruling, issued on August 20, 2026, affects how attorney fees are calculated in medical professional negligence claims and clarifies the application of state law regarding attorney liens.
Jesse Castillo, a patient who suffered severe injuries after visiting a hospital, had initially retained attorneys to pursue claims against the medical professionals involved in his care. After settling his case for an undisclosed amount, a dispute arose over the attorney fees owed to his former lawyers. This case highlights important legal principles surrounding contingency fee agreements and the rights of attorneys to claim fees under Nevada law.
The parties involved in this case include Jesse Castillo, the appellant, and Atkinson Watkins & Hoffmann, LLP, along with Burk Injury Lawyers, the respondents. Castillo had entered into a contingency fee agreement with his attorneys, which specified different percentages of fees based on the timing of the settlement. After the case settled, Castillo's former lawyers argued that the settlement should not be subject to the statutory cap on attorney fees, while Castillo contended that it should be.
The case reached the Nevada Supreme Court after Castillo appealed a district court ruling that favored his former attorneys. The lower court had ordered Castillo to pay the full amount of attorney fees as per the contingency agreement, disregarding the statutory limits set by Nevada law. Castillo argued that the claims made in his case were rooted in professional negligence, which would trigger the fee caps outlined in NRS 7.095.
In its ruling, the Nevada Supreme Court agreed with Castillo, stating, "Under Limprasert v. PAM Specialty Hospital of Las Vegas LLC, 140 Nev., Adv. Op. 45, 550 P.3d 825 (2024), the ordinary negligence claim sounded in professional negligence." The court emphasized that the statutory cap on attorney fees applies to Castillo's settlement, meaning he only owed his former attorneys the amount prescribed by the law.
The court found that the district court had erred in its previous ruling by failing to properly evaluate the nature of Castillo's claims. Instead of examining the substance of the claims, the lower court had relied on their title, which led to a misapplication of the law. The Supreme Court's decision to reverse and remand the case underscores the importance of accurately determining the nature of negligence claims in legal proceedings.
Furthermore, the court addressed the issue of attorney liens, which are claims made by attorneys to secure payment for their services. The court ruled that Atkinson Watkins & Hoffmann had not perfected their lien on the first settlement check because they had received the funds before providing proper notice to Castillo. However, the court found that the lien on the second check was valid because the notice was sent before the attorneys received the funds.
This ruling has significant implications for future cases involving medical professional negligence claims. It clarifies that attorney fees in such cases are subject to statutory caps, which protect clients from excessive fees. This decision also reinforces the requirement for attorneys to follow proper procedures when asserting liens against settlement funds.
Going forward, this ruling will affect not only Jesse Castillo but also other clients who may find themselves in similar situations involving attorney fees and liens. The Nevada Supreme Court's interpretation of NRS 7.095 and the requirements for perfecting attorney liens will guide future legal practices and ensure that clients are treated fairly in their dealings with attorneys.
As for what’s next, the case has been remanded to the lower court for further proceedings consistent with the Supreme Court's opinion. It remains to be seen if either party will seek further appeals or if there are related cases pending that could also be influenced by this ruling.