Attorney’s fees: book accounts.

Plain English Breakdown

The effective date of the bill is unknown from the provided official source material.

Increasing Attorney's Fees for Book Accounts

This law increases the maximum amount of attorney’s fees that a winning party can receive in legal actions based on book accounts.

What This Bill Does

• Increases the maximum attorney’s fees to $1,200 for personal, family, or household book accounts.
• Raises the maximum attorney’s fees to $1,600 for other types of book accounts.
• Keeps the option that attorney’s fees can be up to 25% of what is owed on a contract.

Who It Names or Affects

• People who have legal actions based on book accounts
• Courts deciding these cases

Terms To Know

Book account

A record of financial transactions for personal, family, or business use.

Prevailing party

The person who wins a legal case.

Limits and Unknowns

• Does not specify when the new limits will take effect.

Official Summary Text

AB 78, Chen.
Attorney’s fees: book accounts.
Under existing law, in any action on a contract based on a book account, as defined, that does not provide for attorney’s fees and costs, the prevailing party on the contract is entitled to reasonable attorney’s fees and costs, and the court is required to fix the attorney’s fees in an amount that does not exceed the lesser of $960 for book accounts that are maintained for personal, family, or household purposes of a natural person, and $1,200 for book accounts that are maintained for all other purposes, or 25% of the principal obligation owing on the contract, as applicable.
This bill would increase these maximum attorney’s fees to an amount not to exceed the lesser of $1,200 for book accounts that are maintained for personal, family, or household purposes of a natural person, and $1,600 for book accounts that are maintained for all other
purposes, or 25% of the principal obligation owing on the contract, as applicable.

Current Bill Text

Download Bill PDF