• 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. [Cases: Attorney and Client 146. C.J.S. Attorney and Client §§ 313, 319.]
