I'm not familiar with lawyer costs, 40% means like what 40% of what we think HF owes us?! Or is it a fixed number that happens to be so very high? What happens if we got togerher with other GB's and those who ordered from batch 1 to pay the lawyer?
A 40% contingency fee, which is what's under discussion, means he takes 40% of any recovery if we win and only filing fees if we lose.
So, for an easy illustration, say we win $10k and the filing fees and costs are $1k. First, you subtract the $1k fees/costs from the recovery, then you remove the lawyer's contingency percentage from the remaining $9k (so, remove $3.6k, this is what the lawyer gets paid), the lawyer then cuts us a check for $5.4k and that's what we get out of it.
If we win $20k, and the fees/costs are still $1k, the lawyer keeps $7.6k (40% of the $19k left after costs/fees) and we get a check for $11.4k. Hopefully that helps clear up the issue.
My vote: Fuck hashfast. Lawyer up and make them pay what they owe.