A private deal between opposing sides that sets a minimum payout and a maximum payout no matter what a judge, jury, or arbitrator awards.

In practice, it works like a safety net for both sides. If the injured person loses outright or gets only a tiny award, the defendant still pays the agreed "low." If the award is very large, payment is capped at the agreed "high." Example: if the low is $25,000 and the high is $150,000, a defense verdict could still result in a $25,000 payment, while a $500,000 verdict would be reduced to $150,000. These deals often show up when both sides want to avoid the risk of a runaway verdict or a total loss but are not ready for a full settlement.

For an injury claim, the trap is in the fine print. A high-low agreement can limit upside just when medical proof, lost wages, or future care might justify more. It can also affect strategy around trial, arbitration, damages, and appeal rights. Some agreements stay confidential unless certain conditions are met, so the exact wording matters.

Arkansas does not have a special statute that broadly governs high-low agreements by name, but ordinary contract rules apply, and related deadlines can still control the case, including the Arkansas statute of limitations for many personal injury claims under Ark. Code § 16-56-105. Before agreeing, make sure the payment floor, cap, costs, liens, and release terms are spelled out clearly.