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Re: lg1813 post# 46756

Sunday, 08/21/2011 12:02:04 PM

Sunday, August 21, 2011 12:02:04 PM

Post# of 60938
OK, for easy reference. To calculate whether a settlement offer is worth taking you multiply the risk of loss (as a percentage) times the amount. In our case, again, using a contingency lawyer, we would receive 32% of the settlement with TMob. Let’s assume a 25% risk. Calculations look like this: first column what we think we can win – second column what we should consider taking assuming there is a 75% chance we will win. The second set of numbers is without a contingency lawyer (we get 68%) with a 50/50 chance of winning. All numbers are in millions of dollars. If LG is right, then I will have to adjust the numbers.

remember, the first column is the TOTAL Settlement, not what we would get. The second column is how much WE GET out of the final settlement.

32% take with a 75% chance of winning.
10 - 2.4
15 - 3.6
20 - 4.8
30 - 7.2
40 - 9.6
50 - 12
75 - 18
100 - 24
125 - 30
150 - 36
200 - 48

68% take with a 50/50 chance of winning. Lawyers fees not yet deducted.
10 - 3.4
15 - 5.1
20 - 6.8
30 - 10.2
40 - 13.6
50 - 17
75 - 25.5
100 - 34
125 - 42.5
150 - 51
200 - 68
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