WLAD: Discrimination & The Contingency Adjustment
Under Washington law, what is the "contingency adjustment"? Here’s my point of view (NOTE: please read our DISCLAIMER before proceeding).
THE LODESTAR FORMULA
WLAD entitles prevailing plaintiffs to reasonable attorneys’ fees typically calculated using a lodestar formula; to calculate a lodestar amount, a court multiplies the number of hours reasonably expended by the reasonable hourly rate. And occasionally a risk multiplier will be warranted, because the lodestar figure does not adequately account for the high risk nature of a case. Chuong Van Pham v. City of Seattle, Seattle City Light, 159 Wn.2d 527, 544, 151 P.3d 976, (Wash. 2007) (quotation marks omitted).
THE CONTINGENCY ADJUSTMENT (MULTIPLIER)
Accordingly, after the lodestar amount is calculated the court may consider adjusting the award to reflect additional factors; this is also known as a “contingency adjustment.” Id. at 541. The contingency adjustment is based on the notion that attorneys generally will not take high risk contingency cases, for which they risk no recovery at all for their services, unless they can receive a premium for taking that risk. Id.
In addition, the WLAD places a premium on encouraging private enforcement, and the possibility of a multiplier works to encourage civil rights attorneys to accept difficult cases. Id. at 542 (internal citation omitted); RCW 49.60.020.
Adjustments to the lodestar are considered under two broad categories: (1) the contingent nature of success, and (2) the quality of work performed. Id. (quotation marks omitted). In adjusting the lodestar to account for the risk factor, the trial court must assess the likelihood of success at the outset of the litigation. Id. at 541 (internal citations and quotation marks omitted). This is necessarily an imprecise calculation and must largely be a matter of the trial court’s discretion. Id.
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If you would like to learn more, then consider contacting an experienced Washington State Attorney as soon as possible to discuss your case. Please note: the information contained in this article is not offered as legal advice and will not form an attorney-client relationship with either this author or Williams Law Group, PS; please see our DISCLAIMER.
