28 U.S.C. § 2678: Attorney fees; penalty

Summary

Lawyers must not ask for or take more than 25% of a judgment under section 1346(b) or a settlement under section 2677, and must not ask for or take more than 20% of an award, compromise, or settlement under section 2672. If a lawyer takes more than these limits when money is recovered, the lawyer can be fined up to $2,000, jailed up to one year, or both.

Title 28, §2678

Judiciary and Judicial Procedure, Source: USLM XML via OLRC

No attorney shall charge, demand, receive, or collect for services rendered, fees in excess of 25 per centum of any judgment rendered pursuant to section 1346(b) of this title or any settlement made pursuant to section 2677 of this title, or in excess of 20 per centum of any award, compromise, or settlement made pursuant to section 2672 of this title. Any attorney who charges, demands, receives, or collects for services rendered in connection with such claim any amount in excess of that allowed under this section, if recovery be had, shall be fined not more than $2,000 or imprisoned not more than one year, or both.

Notes & Related Subsidiaries

Historical and Revision Notes

Based on title 28, U.S.C., 1940 ed., § 944 (Aug. 2, 1946, ch. 753, § 422, 60 Stat. 846). Words “shall be guilty of a misdemeanor” and “shall, upon conviction thereof”, in the second sentence, were omitted in conformity with revised title 18, U.S.C., Crimes and Criminal Procedure (H.R. 1600, 80th Cong.). See section 1 and 2 of said revised title 18. Changes were made in phraseology. Senate Revision AmendmentThis section was renumbered “2677” by Senate amendment. See 80th Congress

Senate Report No. 1559

Editorial Notes

Amendments

1966—Pub. L. 89–506 raised the limitations on allowable attorneys fees from 10 to 20 percent for administrative settlements and from 20 to 25 percent for fees in cases after suit is filed and removed the requirement of agency or court allowance of the amount of attorneys fees.

Statutory Notes and Related Subsidiaries

Effective Date

of 1966 AmendmentAmendment by Pub. L. 89–506 applicable to claims accruing six months or more after July 18, 1966, see section 10 of Pub. L. 89–506, set out as a note under section 2672 of this title.

§2678 Attorney Fees; Penalty