High =High-Low Agreement • August 14th, 2014
Specifically, this means that if the Award is in an amount between or equal to the high and low stated above, then the Award shall be enforceable in the amount stated in the Award. If the Award exceeds the High, then the enforceability of the Award shall be limited to the amount stated as the High. If the Award is in an amount below the Low, including any Award wherein the claiming party is awarded nothing, then the Award shall be enforceable in the amount stated as the Low.
ContractHigh-Low Agreement • November 20th, 2019
DRAFTING AN EFFECTIVE, ENFORCEABLE “HIGH LOW” AGREEMENTHigh-Low Agreement • January 17th, 2011
There are few “certainties” in litigation, particularly if a case includes an open-ended claim involving “pain and suffering” or fiduciary breaches. If the claim makes it to the jury, an award may depend on factors over which the client and counsel have limited control, such as third party witnesses, a plaintiff’s medical history or a “smoking gun” produced in discovery. While recognizing that anything can happen in litigation, both plaintiff and defense lawyers can estimate a reasonable range of recovery. But, instead of making settlement decisions based on the estimated range, clients sometime consider the “best” or “worst” case scenario. Fear of a runaway jury can motivate a defendant to pay more than the estimated range, while concern over a motion to strike can convince a plaintiff to accept less than the range. High-low agreements give the parties their day in court without risking the extremes. But an effective high-low involves planning. Litigation is unlikely to end with a jur
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.
High/Low Agreements: An Effective Settlement Vehicle and a Potential Trap for the UnwaryHigh/Low Agreement • August 1st, 2020
A high/low agreement is “a settlement in which a defendant agrees to pay the plaintiff a minimum recovery in return for the plaintiff’s agreement to accept a maximum amount regardless of the outcome of the trial.” Black’s Law Dictionary, 8th ed. (2004). High/low agreements are commonly used in all manner of litigation. They are favored by courts, counsel, and litigants because they “assure plaintiffs of minimally-acceptable recoveries while protecting defendants against exorbitant verdicts.” Thompson v. T.J. Whipple Construction Co., 2009 WL 807467, *8 (Pa. Super. March 30, 2009).
