The use of high-low agreements during the trial of tort cases is an often underutilized and misunderstood litigation technique that serves both parties well. From a plaintiff’s perspective, a high-low agreement guarantees that a minimum monetary amount will be received regardless of the verdict. In most cases, this will result in the payment of case expenses, an award to plaintiff and a fee for the attorney in the event of a defendant’s verdict.
For a defendant, it will prevent a “run-away jury” verdict, protect both a defendant from personal or corporate exposure and an insurance carrier from bad faith claims if the jury verdict exceeds the policy.
