A high-low agreement is a private deal made before a jury delivers its verdict. The defendant agrees to pay at least a minimum amount, called the low, and you agree to accept no more than a maximum amount, called the high. Whatever the jury decides, the final payment lands inside that range. Whether it fits you depends on your case, your comfort with risk, and what your recovery needs to cover.
At Setareh Law, our attorneys bring 60 years of combined experience to car accident cases, and we have seen how stressful the middle of a trial can feel. A high-low agreement is one option that may come up before trial starts or while the jury is still deliberating. Here is how these agreements work and how to decide if one fits your situation.
How a High-Low Agreement Works
A high-low agreement sets a floor and a ceiling for the final payment. For example, imagine you and the other driver’s insurance company agree to a low of $100,000 and a high of $500,000. If the jury awards $50,000 or finds the other driver not at fault, you receive $100,000. If the jury awards $300,000, you receive $300,000. If the jury awards $800,000, the payment stops at $500,000.
The numbers in these agreements may come from how each side values the claim. Medical bills, lost income, and pain and suffering all play a part in how a car accident claim is valued. Because the agreement is a contract, the exact terms matter.
Benefits and Trade-Offs to Weigh
Every high-low agreement trades some certainty for some opportunity. The biggest benefit is a safety net. If a jury sides with the other driver or awards less than expected, the low amount still gives you a set minimum that may help cover medical bills and other costs. This can be reassuring when fault is disputed or injuries are hard to value.
The trade-off is the ceiling. If the jury awards more than the high, you don’t receive the difference, even if the verdict feels fair. Under California’s pure comparative negligence rule, a jury may reduce an award by your share of fault, so the agreement should spell out how that reduction is handled.
When a High-Low Agreement May Make Sense
A high-low agreement may be worth considering when fault is disputed, when the other side has limited insurance coverage, or when you want more certainty after a long case. It may also appeal if a bad verdict would be hard to absorb while medical bills keep arriving.
It may make less sense when your evidence is strong, and your injuries are well documented, because a jury could award more than the high. The right choice depends on your facts, your goals, and your attorney’s advice, so take the time to ask questions.
Other Ways to Resolve a Case Before a Verdict
A high-low agreement is not the only way to settle a claim. For example, the Superior Court of California, County of Stanislaus, offers a voluntary mediation program that helps personal injury cases resolve before trial. Both sides must agree to take part, and the process is confidential.
Settlement talks can continue at any stage of a case. If you do head to trial, we can explain how personal injury cases go to trial in California courts, and a high-low agreement may become one more option if talks stall.
Questions to Ask Before You Agree
Before you sign anything, take time to talk through the terms with your attorney. These questions can help you decide whether a high-low agreement fits your case:
- What is the lowest amount I could receive if the jury sides with the other driver?
- Does the high amount cover my medical bills, lost income, and future care?
- How does the agreement handle any reduction for comparative fault?
- Am I giving up the right to appeal or ask for a new trial?
Photos, medical records, and witness statements can help you gauge how a jury may react, so it helps to know what evidence to gather after a California car accident. A high-low agreement is voluntary, so you can decline it and let the jury decide.
Contact Setareh Law for Help With Your Car Accident Case
A high-low agreement can offer a safety net, but it also puts a limit on your recovery, so the choice deserves clear and honest advice. We have recovered over $400 million for our clients, and we put clients first, with over 900 five-star reviews.
We handle each case on a contingency fee basis, so you only pay a fee if we get you results. With 7 office locations and home visits available, we meet you where you are. If you are weighing a high-low agreement or another settlement option, reach out to us to schedule a free consultation and talk about your next steps.