A more thorough explanation:

A reverse contingent fee is a type of fee arrangement between a lawyer and a client. It is the opposite of a contingent fee, which is charged only if the lawsuit is successful or is favorably settled out of court.

In a reverse contingent fee, a defense lawyer's compensation depends on how much money the lawyer saves the client, given the client's potential liability. This means 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).

Another example would be if a client is facing a potential liability of $500,000 and agrees to pay the lawyer 30% of the amount saved if the case is settled for less than $500,000. If the case is settled for $300,000, the lawyer's fee would be $60,000 (30% of the $200,000 saved).

These examples illustrate how a reverse contingent fee incentivizes the lawyer to negotiate a lower settlement or judgment for the client, as the lawyer's fee is directly tied to the amount saved for the client.