New York Personal Injury Lawyers explain High Low Agreements
A high low agreement is made between the lawyers for the plaintiff and defendant with the consent of their clients. Such an agreement is a contract that sets a ceiling and a floor on the recovery thereby seeking to limit the potential payout defendants must make in the event of a large jury verdict while confirming the plaintiff will receive some baseline monetary amount. For example, in a personal injury action where the insurance policy limits are one million dollars ($1,000,000), the parties may enter into a high low agreement of $100,000 to $550,000. This means that if the...
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