Assembly Member Chen's proposal to modify California's attorney fee structure would raise the maximum recoverable fees in book account disputes, adjusting the current limits to account for legal cost variations across different types of cases.

The measure revises attorney fee caps in two categories of book account disputes where contracts do not specify fee arrangements. For cases involving personal, family, or household accounts, the maximum allowable fee would increase from $960 to $1,200. In all other book account matters, the ceiling would rise from $1,200 to $1,600. The existing alternative cap of 25% of the principal obligation remains unchanged. These limits apply both to prevailing parties bringing actions and to defendants who successfully defend against claimed obligations.

The bill maintains current procedural requirements and exclusions. Courts retain authority to award fees below these maximums based on default fee schedules or case-specific determinations. The provisions continue to exclude actions involving insurance companies, banks, credit unions, and other financial institutions unless specifically addressed by contract. Written agreements must explicitly state that prevailing parties can recover fees under this section for the provisions to apply.