Common Contracts
1 similar High-Low Agreement contracts
The Highs and Lows of High-Low Agreements—The Disclosure IssueHigh-Low Agreement • December 21st, 2007
A high-low agreement is a litigation technique which places a ceiling and a floor on the amount of money awarded at trial, regardless of the jury’s actual verdict. In theory, the agreement insures that neither the plaintiff nor the defendant will face a devastating jury verdict. For instance, instead of a defense verdict or a windfall plaintiff verdict, a high-low agreement provides a comfortable range of damages for both parties. A defendant utilizes a high-low agreement to cap damages at a reasonable level, while a plaintiff, seeking to avoid no recovery, uses the agreement to preserve a minimal damage award. The scope and use of a high-low agreement will depend generally upon the nature of the case, potential risk associated with the case, and plaintiff’s willingness to enter into such an agreement.
