Legal Dictionary of Pakistan

reverse contingent fee

A fee in which a defense lawyer's compensation depends in whole or in part on how much money the lawyer saves the client, given the client's potential liability - so that the lower the settlement or judgment, the higher the lawyer's fee. ( For example, if a client might be liable for up to $2 million, and agrees to pay the lawyer 40% of the difference between $1 million and the amount of the settlement or judgment, then a settlement of $800,000 would result in a fee of $80,000 (40% of the $200,000 under the threshold amount of $1 million). - Also termed negative contingent fee; defense contingent fee; reverse bonus.