CaliforniaAB 782025-2026 Regular SessionHouseWALLET

Attorneyâs fees: book accounts.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Attorney fee caps in book account cases

In book account contract cases for contracts entered on or after January 1, 1987, the party who recovers greater relief gets reasonable attorney’s fees, unless the court finds no prevailing party. This applies only when the contract does not already give fees under Section 1717. The court must cap fees at the smaller of: $1,200 for personal debts by a natural person, $1,600 for other accounts, or 25% of the principal owed. If the court finds you owe nothing, it must award your fees up to the same caps. Courts use default fee schedules, and any amount above the schedule must be proven reasonable and necessary.

Signed contracts must state fee rights

If you signed a written agreement, these fees apply only if that agreement says the prevailing party gets fees under this law. Without that signed statement, the law’s fees cannot be imposed based on that agreement.

Fee rules: exceptions for banks and insurers

These fee rules do not apply when a bank, savings association, credit union, an authorized industrial loan company, or a licensed consumer or commercial finance lender (or their affiliates) is a party. They also do not apply when an insurance company is a party. An insurer, surety, or guarantor is not liable for fees awarded against its insured unless a contract specifically makes them liable.

Sponsors & Cosponsors

Sponsor

Phillip Chen
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 131 • No: 0

Senate vote • 7/3/2025

Item 143 — Senate SFLOOR

Yes: 35 • No: 0

legislature vote • 6/24/2025

Vote in CS53

Yes: 12 • No: 0

House vote • 3/10/2025

Item 5 — Assembly AFLOOR

Yes: 72 • No: 0

legislature vote • 3/4/2025

Vote in CX13