Opinion ID: 359726
Heading Depth: 2
Heading Rank: 3

Heading: contingency factor

Text: 63 The district court multiplied the lodestar by a factor of 2 to account for the contingent nature of the case. When the district court recalculates the lodestar on remand, we believe it should also re-evaluate the contingency factor in light of that recalculated lodestar. We note that, except in the most unusual circumstances, it is not consistent with the sound exercise of discretion to increase the lodestar by so large a factor as 2 in order to account for contingency. Even in Lindy II, a case far more complex and difficult than this one, we approved an increase of twice the lodestar to account for Both Contingency And quality, and we did so with some reluctance. Lindy II, supra, 540 F.2d at 118. In this case, the circumstances do not justify such a large increase for contingency. 64 When this case is evaluated in light of our analysis in Lindy II, the unreasonableness of the large increase for contingency becomes apparent. It is true that plaintiff's attorneys here risked a large expenditure of hours without guarantee of payment, and did so in a case where they did not have the benefit of prior government litigation or investigation. And it is true that the attorneys advanced substantial costs, and that there has been some delay in payment of the fee. All of these factors properly may be considered under Lindy II in evaluating contingency. It is also true, however, that the case was not complex legally or factually and that damages were relatively easy to prove. Under Lindy II, these factors also are to be considered in evaluating contingency, and in this case they appear to cut against any increase in the lodestar. Lindy II, supra, 540 F.2d at 117. 65 Moreover, the lodestar as originally calculated by the district court was a significant amount in comparison to the amount awarded plaintiff in damages. In such circumstances, the court may find that . . . the amount found to constitute reasonable compensation for the hours worked was so large a proportion of the total recovery that an increased allowance for the contingent nature of the fee would be minimal. Lindy I, supra, 487 F.2d at 168. We believe the district court should evaluate the recalculated lodestar with this caveat in mind before it fixes any increment to account for the contingent nature of the case.