Also known as a reverse contingent fee. A fee that is a percentage of the amount of money that a client saved in litigation. For example, a client and counsel may agree to base counsel's fee on a percentage of the difference between the amount a plaintiff originally demands from the client and the amount that the client must pay the plaintiff, whether by settlement or judgment.

A reverse contingency fee may align counsel's and their client's interests more closely than hourly or fixed fee arrangements because it incentivizes counsel to reduce their client's liability as much as possible.

Rule 1.5 of the American Bar Association (ABA) Model Rules of Professional Conduct permits reverse contingency fees if:

(See ABA Formal Op. 93-373 (1993).)