Nevada AB3: What the New $100,000 Arbitration Threshold Means for Injury Claimants

Assembly Bill 3 moved Nevada's court-annexed arbitration ceiling from $50,000 to $100,000, effective January 1, 2026. Here is what that change means if your injury claim falls in that range and how to protect your recovery.

What Court-Annexed Arbitration Is and How AB3 Reshaped It

Nevada's court-annexed arbitration program diverts civil injury lawsuits below a specified dollar amount to a streamlined hearing before a neutral arbitrator, bypassing the full jury-trial process for smaller and mid-sized claims. That ceiling sat at $50,000 for years before the legislature acted. AB3, taking effect January 1, 2026, moved the ceiling to $100,000, a change that immediately affects how a large share of pending and future injury claims travel through the Nevada court system.

The case for the increase is grounded in economic reality. Medical care, rehabilitation costs, and lost earnings have risen substantially over the past decade. A threshold calibrated for an earlier era failed to reflect what even moderate injuries actually cost an injured person. By raising the limit, the legislature acknowledged that a wider category of real-money injury claims should be resolved through an expedited process rather than waiting years for a jury trial date.

For claimants, the practical effect is clear: if your damages, including medical bills, lost income, and pain and suffering, fall under $100,000, your case will very likely begin in arbitration. That is not inherently bad. Arbitration is faster, less formal, and produces a binding award that either side may appeal to a jury trial. But it demands the same level of preparation as trial, not less.

How the Recoverable Fee Cap Changed: From $3,000 to $15,000

AB3 also raised the ceiling on attorney fee recovery in arbitration cases from $3,000 to $15,000, matching the cap that already applied to short-trial proceedings. The prior $3,000 limit was a meaningful barrier. Preparing for an arbitration hearing requires discovery, expert consultation, record gathering, and legal argument work that routinely exceeds what three thousand dollars can support. Many experienced personal injury attorneys found it difficult to justify accepting mid-range claims under the old fee structure.

The result, over time, was a gap in access. Injured Nevadans with claims between $50,000 and $100,000 sometimes struggled to find counsel willing to take their case all the way through the arbitration process at the rates the old rules permitted. Pre-hearing settlements may have reflected that pressure rather than the true value of the claim.

With the new $15,000 ceiling, the economics of representing a claimant through arbitration are substantially improved. Attorneys who previously passed on mid-range cases can now work within a fee framework that reflects the actual effort involved. For claimants, that means a wider pool of qualified representation is available when your case is assigned to the arbitration track.

Three New Exemptions: When Arbitration Does Not Apply

AB3 carved out three categories of cases that bypass arbitration entirely, regardless of the dollar amount claimed. First, any action where bad-faith insurance coverage conduct is alleged alongside a demand for punitive damages goes directly to the full trial track. Bad-faith cases require examining an insurer's internal practices, decision-making culture, and financial exposure in ways that a single arbitration session cannot adequately address.

Second, claims arising from sexual assault or sexual battery are now categorically exempt. These cases involve deep credibility disputes, severe psychological harm, and damage calculations that resist any simple dollar formula. Routing a survivor's civil claim through a compressed arbitration hearing is a mismatch for the weight of what is at stake.

Third, product liability actions carry a permanent exemption. Cases involving defective products typically require engineering experts, extensive corporate discovery, and close examination of design and manufacturing decisions. The procedural tools available in a full trial are necessary for building and presenting that kind of evidence. Claimants injured by a defective product now have a cleaner path to the jury track without first clearing the arbitration hurdle.

The Rejection Penalty and Why It Shapes Strategy

Nevada rules include a mechanism that creates meaningful financial stakes around the decision to reject an arbitration award. A party that rejects an award and takes the case to a jury must beat the award amount by more than ten percent. If the trial result falls within that ten-percent band, the rejecting party may be required to pay the opposing side's post-arbitration costs and fees.

Consider a claimant who receives a $70,000 arbitration award. To walk away from it penalty-free at trial, the jury verdict must exceed $77,000. If the jury returns $73,000, the claimant still recovered more than the award, but not enough to clear the threshold. The net recovery after paying the defense's costs could drop below the original $70,000 offer.

This rule is intentional. It encourages parties to treat arbitration as a serious proceeding rather than an obligatory warmup before trial. For injury claimants, it underscores why the quality of evidence presented at arbitration matters enormously. A well-prepared arbitration hearing produces an award that reflects true case value, making any rejection decision a genuinely informed one rather than a reflexive appeal.

Steps to Protect Your Claim Under the New Framework

Start building your case file from the moment you decide to pursue a claim. Arbitrators evaluate the same categories of evidence as juries: medical records that document the injury and its treatment, bills that quantify economic loss, wage records that support lost-income claims, and expert opinions on future care or permanent disability. The arbitration timeline is compressed, which means gathering that evidence early is not optional.

If you believe your case might fall under one of the three new exemptions, raise that question with your attorney before assignment. A product liability claim or a bad-faith coverage dispute should be framed clearly in the pleadings from the outset. Waiting until after an arbitration hearing to argue for an exemption wastes time and weakens your position.

At Litigators for Justice, we track every legislative development affecting Nevada injury claimants and build each case with the same depth whether it goes to arbitration or trial. A free, confidential consultation is available around the clock. You pay no fees unless we recover compensation for you.

6 Things Every Nevada Injury Claimant Should Understand About Arbitration After AB3

The rules changed on January 1, 2026. Here is the critical checklist before your case gets assigned to the program.

1. The $100,000 ceiling now determines your track: Any claim valued under that amount is presumed eligible for arbitration. This applies to a much wider range of cases than it did before January 1, 2026.
2. Prepare for arbitration as thoroughly as for trial: Records, bills, wage documentation, and expert opinions all need to be organized before the hearing date. A compressed timeline punishes late preparation.
3. The higher fee cap means better counsel is accessible: With attorney fee recovery rising to $15,000, experienced personal injury attorneys can take mid-range claims to arbitration and do the necessary work. Shop accordingly when selecting representation.
4. Product liability claims are fully exempt: If a defective device, vehicle component, or consumer product caused your injury, your case bypasses arbitration entirely and proceeds on the full trial track.
5. Bad-faith insurance disputes with punitive claims are also exempt: When an insurer's conduct rises to the level of bad faith and you are seeking punitive damages, that dispute goes to a jury, not an arbitrator.
6. Know the rejection math before you walk away from an award: Calculate the 10-percent threshold before rejecting an arbitration outcome. Falling inside that band at trial can reduce your net recovery below what you were already offered.

Frequently asked questions

Does AB3 apply to cases already filed before January 1, 2026?

The new $100,000 threshold generally applies to cases assigned to the arbitration track on or after the effective date. If your case was already in arbitration proceedings under the prior rules, confirm with your attorney whether any transition provisions alter your current schedule.

Can I opt out of arbitration and demand a jury trial immediately?

Nevada's court-annexed arbitration is mandatory for eligible cases. You cannot bypass the arbitration step for a non-exempt claim simply by preference. The path to a jury trial runs through an arbitration award first, followed by a formal rejection and appeal.

What exactly qualifies as the bad-faith insurance exemption?

The exemption requires two things in the same action: an allegation of bad-faith insurance coverage conduct AND a demand for punitive damages. A standard coverage dispute over claim valuation, without punitive exposure, typically does not qualify for the exemption.

How long does court-annexed arbitration usually take in Nevada?

Most cases are heard within 90 to 150 days of assignment, though scheduling demands and discovery issues can push that window. Even at the outer edge, it is significantly faster than waiting for a civil jury trial date in most Nevada jurisdictions.