The online version of Fortune has an article about an unusual continuing legal education class -- "Madoff 101: Total Immersion for Lawyers".
Senior Editor Roger Parloff includes this bit:
Those who sustained particularly heavy losses and who can afford to bring their own individual cases usually prefer to do so, rather than joining class actions. In an individual suit the plaintiff exercises more control over his suit and can pay his attorney only hourly fees rather than a contingent fee amounting to a healthy percentage - usually 25% or more - of the entire recovery.
Blawgletter concurs in part and dissents in part.
People who lost a bundle to Madoff, Stanford, and their ilk often do opt to hire their own counsel to prosecute claims against culpable participants, aiders, and abetters outside of a class action.
But a Great Many don't go for shelling out "only hourly fees", which could cost hundreds of thousands, instead of a contingent fee, which comes out of a recovery by judgment or settlement. Some may like a hybrid arrangement -- lower hourly rates plus a lower contingent fee percentage -- best.
Besides, the hourly fee must die.
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