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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 in 11 states and London. The firm's national reputation spans the insurance industry, the professional services sector—including representation of law firms and lawyers—and other highly regulated industries, such as banking and finance and the debt collection sector. Hinshaw also provides a series of closely coordinated litigation, business advisory and transactional services to clients of all sizes as well as governmental and public sector entities.

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