Menu

Scott Seaman Considers High-Low Settlement Strategies and Best Practices

October 26, 2017

Hinshaw attorney Scott Seaman, a Chicago-based partner and co-chair of the firm's national Insurance Services Practice Group, considered high-low settlements in a Law360 article. In a high-low settlement, a defendant agrees to pay a minimum, regardless of the verdict, to the plaintiff, who agrees in turn to accept up to a maximum figure from the defense in the event of a favorable verdict — even if the jury comes back with a far bigger figure.

Seaman said that every high-low agreement should account for what happens in the event of a mistrial or a deadlocked jury. It should also include a covenant not to enforce a verdict outside the agreed-to range and a pay-by date. It should also address confidentiality of the deal itself and any potential impact on liens at play in the dispute.

“A high-low does add to the potential for an unhappy client and the best way to prepare for that is a full disclosure to the client in writing, a solidly drafted agreement, and being confident about enforceability,” Seaman is quoted as saying. “If all that is met, you’re protected against an unhappy client.”

Read the full article on Law360

Hinshaw & Culbertson LLP is a U.S. based law firm with offices nationwide and in London. The firm's national reputation spans the insurance industry, the financial services sector, and other highly regulated industries. Hinshaw also serves as counsel to the professional services sector, and provides business advisory and transactional services to clients of all sizes.