It's real simple. A lawyer will take a case on contingency if he/she believes that:
X * Y * Z > A
- X is most likely recovery in dollars
- Y is the most likely financial recovery
- Z is the contingent fee percentage
- A is the amount of money that the lawyer could earn working on other matters in the time it would take him/her to work on your case.
For example, if the attorney thinks there's an 80% chance of recovering $80,000, and that he/she would earn a 40% contingent fee, and the case will take 50 hours of the lawyer's time, then it's worth it for the lawyer to take the case if his/her non-contingent billing rate is less than $512 per hour. However, if the same case will take 100 hours, and the lawyer's billing rate is $300 per hour, then it's not worth the risk.
Class actions are particularly risky. Some firms specialize in class actions. They have the potential for huge fee awards, but their success rate is very low.
X * Y * Z > A
- X is most likely recovery in dollars
- Y is the most likely financial recovery
- Z is the contingent fee percentage
- A is the amount of money that the lawyer could earn working on other matters in the time it would take him/her to work on your case.
For example, if the attorney thinks there's an 80% chance of recovering $80,000, and that he/she would earn a 40% contingent fee, and the case will take 50 hours of the lawyer's time, then it's worth it for the lawyer to take the case if his/her non-contingent billing rate is less than $512 per hour. However, if the same case will take 100 hours, and the lawyer's billing rate is $300 per hour, then it's not worth the risk.
Class actions are particularly risky. Some firms specialize in class actions. They have the potential for huge fee awards, but their success rate is very low.