As an experienced NYC personal injury attorney, I have used a Hi-Low agreement many times during very difficult personal injury trials to protect my clients’ interests and guarantee they get money even in the event of a loss at trial.
Under New York law, a High-Low agreement is an agreement entered into by both parties that states regardless of the jury’s verdict, the plaintiff is guaranteed to receive a minimum cash award.
Of course, there is also a maximum agreed-upon award which is your upper limit, even if the jury awards more.
All parties must agree, which is often the challenge. The High / Low limits are always negotiable. It’s a great tool used by top NYC personal injury lawyers in difficult cases, because it guarantees some compensation to the client. Insurance companies defending personal injury lawsuits in NYC often agree because it caps their exposure to a huge jury verdict.
When negotiating a personal injury high-low agreement in New York City, I always suggest including a “no appeal clause,” a 20-day mandatory payment, and consent to convert the agreement into an interest bearing recordable judgement with interest in the event of non-payment.
Remember, it is important that the client is fully aware of the risks and benefits before any agreement is finalized.