Think of it like putting bumpers on a bowling lane: no matter how wild the roll gets, there is a floor and a ceiling. In a lawsuit or settlement negotiation, a high-low agreement is a private deal that sets the minimum amount the injured person will receive and the maximum amount the other side will have to pay, no matter what a judge or jury decides. If the verdict comes in below the "low," the plaintiff still gets the low number. If it comes in above the "high," the defendant pays only the high number. If it lands in between, the actual verdict usually controls.

This kind of deal is often used when both sides want to cut risk without fully settling the case. It can make sense when fault is disputed, medical proof is uneven, or nobody wants to gamble on a runaway verdict. For someone hurt in a crash, fall, or workplace-related incident, it creates a safety net while keeping the case alive.

What to do: get the numbers in writing, make sure the agreement says whether costs, liens, and attorney's fees come out before or after the payment, and confirm whether it stays confidential. In New York, a high-low agreement does not extend filing rules or statute of limitations deadlines. If the claim involves the MTA or a city agency, the Notice of Claim deadline under General Municipal Law § 50-e is still 90 days.