The majority of Florida car accident claims are settled prior to a trial, and one form of settlement is called a “high-low agreement.” This is when the parties in the case agree that no matter what the outcome of a case, defendant will pay a minimum amount – but no more than an agreed-upon maximum amount. This takes some of the “all-or-nothing” guesswork out of the trial process, and ensures a plaintiff will receive some amount of compensation no matter what.
However, injury lawyers can explain it might still be risky, and it must be done with all parties – including insurers – being appropriately informed.
Although certain procedures and timelines can vary from state-to-state, the same basic principles of high-low agreements typically apply across the board. In a recent case out of New Jersey, a plaintiff who agreed to a high-low agreement ran into trouble by failing to inform his uninsured/ underinsured motorist coverage carrier of the arbitration, high-low agreement, completed jury trial or verdict. When it came time to collect, the UM/UIM insurer refused. Continue reading →