By Alia A. Najjar, M.D., Esq.
Assembly Bill 404, signed into law in June 2023, made some significant changes to professional negligence actions in Nevada. The following are five important things to know about these changes:
- The statute of limitations on professional negligence actions accruing on or after October 1, 2023, increased from one to two years.
NRS 41A.097 was amended to add a new subsection 3, which extends the statute of limitations for filing a lawsuit in Nevada for injury or wrongful death of a person that occurred on or after October 1, 2023, and is based upon the alleged professional negligence of a provider of health care. Patients will now have two years from the date of discovery of the injury or reasonably should have discovered the injury, up to three years from the date of the injury, whichever occurs first, to bring a lawsuit against a provider of health care in Nevada. - The “one year” statute of limitations is still in effect for actions accruing prior to October 1, 2023.
For injuries or wrongful death occurring on or after October 1, 2002, through September 20, 2023, based upon the alleged professional negligence of a provider of health care, patients still must file no more than three years after the date of the injury or one year after discovery of the injury or the date in which the injury should have been discovered, whichever occurs first. NRS 41A.097(2). - On January 1, 2024, the non-economic damages cap for professional negligence actions increased by $80,000 and will increase by $80,000 every year thereafter until 2028.
In Nevada, non-economic damages as defined by NRS 41A.011, such as pain and suffering, have long been subject to a damages cap of $350,000, regardless of the number of plaintiffs, defendants, or theories upon which liability may be based. On January 1, 2024, the non-economic damages cap was increased by $80,000, making it $430,000. For four years thereafter, until 2028, the non-economic damages cap will increase by $80,000, until it reaches $750,000. - After 2028, the non-economic damages cap will increase by a flat rate of 2.1 percent per year.
Beginning January 1, 2029, the non-economic damages cap will thereafter increase by a flat rate of 2.1 percent per year. To make it easier for attorneys and the public to determine what the non-economic damages cap is for a particular year, the law also requires the Supreme Court of Nevada to annually publish on its website the maximum amount of non-economic damages that may be awarded in a professional negligence action in each year for the next 20 years. NRS 41A.035(4). - The tiered contingency fee for professional negligence actions was abolished for causes of action accruing on or after October 1, 2023.
For professional negligence causes of action accruing on or after October 1, 2023, attorneys may collect a fee of 35 percent of any amount recovered. NRS 7.095(1). For such causes of action accruing before October 1, 2023, the tiered system of 40 percent of the first $50,000 recovered, 33 and a third percent of the next $50,000 recovered, 25 percent of the next $500,000 recovered, and 15 percent of any amount of recovery that exceeded $600,000 still applies.
About the author
Alia A. Najjar, M.D., Esq. is a partner at Quintairos, Prieto, Wood and Boyer, PA practicing in the areas of general liability defense, professional negligence/medical malpractice defense, and healthcare administrative law. She can be reached at alia.najjar@qpwblaw.com.
About the article
This article was originally published in the Communiqué (Jan. 2024), the official publication of the Clark County Bar Association. See https://clarkcountybar.org/about/member-benefits/communique-2024/communique-jan-2024/.
© 2024 Clark County Bar Association (CCBA). All rights reserved. No reproduction of any portion of this issue is allowed without written permission from the publisher. Editorial policy available upon request.