What is High-Low Agreement?
A binding agreement between the plaintiff and defendant that sets a guaranteed minimum (floor) and maximum (ceiling) on the damages award regardless of the jury's verdict.
Understanding High-Low Agreement
High-low agreements reduce risk for both sides. The plaintiff is guaranteed a minimum recovery even if the jury returns a defense verdict, while the defendant limits their maximum exposure. If the verdict falls between the agreed floor and ceiling, the actual verdict amount applies. These agreements are often kept confidential from the jury.
Examples
- 1Agreement setting $100,000 floor and $500,000 ceiling before trial
- 2Parties agreeing to high-low during jury deliberations to manage uncertainty
- 3Defense offering high-low to avoid risk of runaway verdict
Related Terms
Settlement
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Verdict
The formal decision or finding made by a jury (or judge in a bench trial) on the questions of fact submitted to them during a trial.
Mediation
A form of alternative dispute resolution where a neutral third party (mediator) helps the parties negotiate a settlement without going to trial.
Arbitration
A form of alternative dispute resolution where a neutral arbitrator hears evidence and arguments from both sides and makes a binding decision.
Settlement Demand
A written demand from the plaintiff to the defendant or their insurance company requesting a specific amount of compensation to resolve a personal injury claim.
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