Going through a personal injury case in Wisconsin is an overwhelming experience. You’re dealing with pain, medical appointments, financial pressure, and the uncertainty of not knowing how things will turn out. At the Milwaukee law firm of Warshafsky Law Firm, we work hard to do the heavy lifting for our clients who are facing personal injury lawsuits.
One of the tools used in the industry—and often ways we disagree with—is called a “high low agreement.” It is not advised in the majority of cases, but it is important to understand as one option for trial.
What is a High-Low Agreement?
A high-low agreement is a private arrangement between the injured person and the defendant (through their attorneys). It is usually established before or during trial, and it sets a guaranteed minimum amount the injured person will receive and a maximum amount the defendant will pay, no matter what the jury decides. Cases involving serious and life-altering injuries often carry enormous uncertainty about how a jury might respond to the evidence. The high-low agreement addresses that uncertainty by giving both sides some financial predictability, while still allowing the trial to proceed and the jury to reach a verdict.
Could a High-Low Agreement Help Your Case?
In certain situations, this kind of arrangement can offer protection for an injured person. The circumstances where a high-low agreement tends to make the most sense are when two things are true at the same time: there is real uncertainty about who was at fault, and the possible range of damages is wide.
In cases where fault for the accident is uncertain or disputed, having a guaranteed floor under your recovery can provide real peace of mind. Even if the jury’s verdict comes in lower than expected, or even at zero, the agreement ensures the plaintiff still receives some compensation.
The same logic applies when the potential damages are hard to predict. A traumatic brain injury or spinal cord case, for example, might produce a jury award anywhere across a very wide range depending on how testimony lands, how the jury connects with the evidence, and many other factors outside anyone’s control. When that range is genuinely large, a high-low agreement can protect you from the worst outcome while still giving you the chance to benefit from a strong verdict.
When establishing an agreement, the gap between the floor and the ceiling should be meaningful. If the two numbers are set close together, it raises a fair question about why the case isn’t simply settling. A well-structured high-low agreement reflects genuine uncertainty about the trial outcome. A narrow range often signals something else, and your attorney should be able to explain clearly why the proposed terms make sense for your specific situation.
When Might a High-Low Agreement Not Be the Right Choice?
When liability is clear and well-supported, a high-low agreement may not serve your interests. If the evidence strongly supports that the other party was at fault, agreeing to a ceiling on your recovery means you might leave significant compensation on the table if the jury awards more than that ceiling. If there’s no question as to the causation and extent of a person’s injuries, it also may not make sense to enter into a high-low agreement. It is important that a plaintiff understand why a high-low agreement is being discussed and the potential effects on their claim.
Weighing the Benefits and the Tradeoffs
The most meaningful benefit of a high-low agreement is certainty. For someone facing mounting medical bills after a serious accident, knowing that a minimum recovery is guaranteed regardless of the jury’s decision can relieve an enormous amount of anxiety. You can proceed to trial without the fear of walking away with nothing.
The tradeoff is that you may not receive the full amount a jury might have awarded. If the verdict comes in above the ceiling, the agreement limits your recovery to that cap. Whether that tradeoff makes sense depends entirely on the facts of your case, the strength of the liability evidence, and the realistic range of what a jury might decide. Our skilled litigation attorneys will advise you about the best way to proceed for your unique situation.
Contact Us Today for a Free Consultation
We want you to feel supported through every step of this process. You deserve thoughtful legal guidance that puts your wellbeing first. Wisconsin injury cases involve real complexity, and the decisions made during trial, including whether to enter a high-low agreement, can shape your future in lasting ways.
You don’t have to navigate this alone. Reach out to Warshafsky Law Firm for a free consultation, and let us walk through your options with you. We’re here to help you make the choice that’s right for your situation, with care and with honesty.
