Montana Judiciary Committee Hears Bill to Cap Private-Attorney-General Fee Awards

Members of the House Judiciary Committee opened a hearing on House Bill 701 on the bill's effort to limit attorney-fee awards in suits brought under the private-attorney-general doctrine.

Representative Randon Gregg, sponsor of HB 701, said the measure would align fee awards with public-service compensation to prevent out-of-state counsel from billing Montana taxpayers at premium private rates. "House Bill 701 is an important step in the legislature's ongoing effort to ensure fairness and accountability in Montana's judicial system," Gregg said as he described past cases in which fee requests exceeded $600,000 and argued that adjusting awards to the attorney general's 2024 hourly rate would save the state money.

Michael Russell, civil bureau chief at the Montana Department of Justice, testified in support. "It's DOJ's position that HB 701 is an appropriate measure to protect the taxpayers from the recent trend of courts awarding attorney's fees against state constitutional challenges," Russell told the committee, adding that limiting recoverable fees to the attorney general's rate removes a bargaining leverage that can pressure state negotiations.

Opponents told the committee the change could undercut access to legal representation. Derf Johnson of the Montana Environmental Information Center warned that a $76-per-hour cap would make it impracticable for many attorneys to take cases, particularly highly specialized claims that require out-of-state counsel. "This is a very broad sweeping, incredibly problematic bill, and it will allow for the government to not be sued," Johnson said, urging the committee to oppose the measure.

During questions, members pressed witnesses about existing court procedures to determine reasonable fee rates, whether the attorney general's office had conducted a statewide survey of prevailing rates, and what the state pays outside counsel. Russell conceded courts typically hold fee hearings and that the AG's office sometimes hires outside counsel but said he did not have all budget details at hand. Multiple legislators asked the Attorney General's Office to provide data on outside-counsel rates and historical supplemental appropriations for litigation costs.

Why it matters: HB 701 pits fiscal concerns about taxpayer-borne litigation costs against the principle that private plaintiffs should be able to secure counsel to contest government action. If enacted, the bill would change the calculus for contingency arrangements and for how courts determine fee awards in civil-rights and constitutional cases.

What happens next: The committee closed the hearing and moved on to other bills; committee members requested additional fiscal information and rate data from the Attorney General's Office that could shape later deliberation or amendment.

Speakers

- Randon Gregg — Sponsor, House District 78 (first spoke SEG 055) - Michael Russell — Civil Bureau Chief, Montana Department of Justice (first spoke SEG 118) - Derf Johnson — Montana Environmental Information Center (first spoke SEG 161)

Authorities cited (as spoken in the hearing)

- Title 27, chapter 1, part 7 (referenced by Michael Russell during testimony)

Provenance

- topicintro: {"block_id_start":"SEG 052","block_id_end":"SEG 056","evidence_excerpt":"We'll start on House Bill 701..."} - topfinish: {"block_id_start":"SEG 403","block_id_end":"SEG 419","evidence_excerpt":"This closes the hearing on House Bill 701."}

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