A high-low agreement is one in which the parties, or some of them, agree that if a verdict is above a specified range of numbers agreed upon by such parties, the defendant’s liability for damages shall be the highest number in that range, and that if a verdict is less than the lowest number in that range, including a verdict of no cause for action against such defendant, defendant shall pay the plaintiff the lowest number in the range. If the verdict against the defendant falls within the range, the damages the defendant shall pay is the verdict reached by the jury. Whenever a plaintiff and a defendant enter into a high-low agreement in a multi-defendant action that is to be tried by jury, the parties shall disclose the existence of that agreement and its terms to the court and to all other parties to the action immediately after entering into the agreement.
Rule 4:24A.High-Low Agreements
Last amended September 1, 2018 · Current through June 18, 2026 · Last verified July 7, 2026
In one sentenceRule 4:24A defines a high-low agreement — under which a defendant pays no less than a floor and no more than a ceiling regardless of the verdict — and requires the parties to disclose such an agreement and its terms to the court and all other parties in a multi-defendant jury trial.
Full Text of Rule 4:24A
Amendment History
New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.
Adopted July 27, 2018 to be effective September 1, 2018.
Plain-English Summary
A high-low agreement caps risk on both sides of a verdict. Under this rule, the parties agree that a defendant will pay at least a set floor even if the jury awards less (or nothing) and no more than a set ceiling even if the jury awards more, while a verdict within the range is paid as the jury found. It lets a defendant limit exposure and a plaintiff guarantee a recovery.
Transparency is required in multi-party trials. When a plaintiff and a defendant enter such an agreement in a multi-defendant action tried to a jury, they must disclose the existence and terms of the agreement to the court and to all other parties immediately, so the remaining parties and the court understand the altered incentives at trial.
Frequently Asked Questions
What is a high-low agreement?
An agreement fixing a floor and ceiling on a defendant’s payment: the defendant pays at least the low number even if the jury awards less, and no more than the high number even if the jury awards more, with a within-range verdict paid as rendered.
Do high-low agreements have to be disclosed?
Yes, in a multi-defendant jury trial. The parties to the agreement must disclose its existence and terms to the court and all other parties immediately after entering into it.
Source & verification. The rule text and amendment history are reproduced verbatim from the
official New Jersey Rules of Court (N.J. Ct. R. 4:24A). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. ·
Official source
Also known as: high-low agreementfloor and ceilingsettlement agreement disclosure