Plain English Breakdown
The effective date is not specified in the provided official bill metadata or summaries, so it remains unknown based on available text.
AB-78: Changing Limits on Attorney Fees for Book Accounts
This law increases the maximum amount a court can award in attorney fees when someone wins a lawsuit over certain types of unpaid bills that do not have an agreement about paying those fees.
What This Bill Does
- Raises the fee limit to $1,200 for book accounts used for personal, family, or household purposes.
- Raises the fee limit to $1,600 for book accounts used for all other purposes.
Who It Names or Affects
- Courts deciding cases involving book accounts without a contract that already states how much attorney fees to pay.
- People who win lawsuits over unpaid personal or family bills and do not have an existing fee agreement in their contracts.
- Parties involved in other types of unpaid bill disputes where no prior fee agreement exists.
Terms To Know
- Book account
- A record showing charges for goods, services, or money owed between parties who have a history of doing business together.
- Prevailing party
- The person or group that wins the lawsuit in court and is entitled to reasonable attorney fees if no fee amount was agreed upon beforehand.
Limits and Unknowns
- This law only applies if the original contract does not already state how much attorney fees to pay.
- The official text provided does not specify an exact date when these new limits begin, though it is now enacted law.