High Low Settlement Agreement for South Africa

High Low Settlement Agreement Template for South Africa

A High-Low Settlement Agreement under South African law is a specialized settlement instrument that establishes predetermined maximum and minimum recovery amounts in civil disputes. This agreement allows parties to proceed with litigation or arbitration while limiting their respective risk exposure - the plaintiff is guaranteed a minimum recovery (the 'low'), while the defendant caps their liability exposure (the 'high'). The final settlement amount will fall within these parameters regardless of the ultimate verdict or decision. This type of agreement is particularly common in personal injury cases and commercial disputes where parties seek to manage litigation risk while preserving their day in court.

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What is a High Low Settlement Agreement?

The High Low Settlement Agreement is a risk management tool used in South African civil litigation where parties agree to proceed with their dispute resolution process while setting predetermined boundaries for the final settlement amount. This agreement type is particularly valuable when there is significant uncertainty about the potential outcome of a case, but both parties wish to limit their risk exposure. It is commonly used in personal injury claims, insurance disputes, and commercial litigation where the quantum of damages is contested. The agreement must comply with South African contract law principles and civil procedure requirements, while considering relevant legislation such as the Consumer Protection Act and Insurance Act where applicable. The document typically includes detailed provisions about the high and low amounts, triggering events, payment terms, and the impact of the agreement on existing litigation or arbitration proceedings.

What sections should be included in a High Low Settlement Agreement?

1. Parties: Identification of all parties to the agreement, including their full legal names, registration numbers or identity numbers, and addresses

2. Background: Description of the dispute, including reference to any ongoing litigation or claims

3. Definitions: Definitions of key terms used in the agreement, including 'High Amount', 'Low Amount', 'Settlement Sum', and 'Triggering Event'

4. High-Low Parameters: Clear specification of the maximum (high) and minimum (low) settlement amounts

5. Settlement Mechanism: Process for determining the final settlement amount within the agreed range

6. Payment Terms: Terms and conditions for payment, including timing, method, and any installment arrangements

7. Release and Discharge: Mutual release of claims upon settlement

8. Confidentiality: Provisions regarding confidentiality of the agreement terms

9. Governing Law and Jurisdiction: Specification of South African law as governing law and jurisdiction for disputes

10. General Provisions: Standard boilerplate clauses including entire agreement, amendment, and severability

What sections are optional to include in a High Low Settlement Agreement?

1. Tax Provisions: Include when settlement amounts are substantial or have specific tax implications

2. Insurance Company Provisions: Include when an insurer is involved in funding the settlement

3. Multiple Party Provisions: Include when there are multiple plaintiffs or defendants

4. Costs Provisions: Include when legal costs need to be addressed separately from the main settlement

5. Alternative Dispute Resolution: Include when parties want to specify mediation or arbitration for future disputes

6. Non-Admission Clause: Include when defendant wants to explicitly state that settlement does not constitute admission of liability

What schedules should be included in a High Low Settlement Agreement?

1. Schedule A - Calculation Formula: Formula or method for calculating final settlement amount within the high-low range

2. Schedule B - Payment Schedule: Detailed payment terms if installment payments are agreed

3. Schedule C - Supporting Documents: List of relevant court documents, claim documents, or evidence referenced in the agreement

4. Appendix 1 - Power of Attorney: If applicable, authorization documents for representatives signing the agreement

5. Appendix 2 - Court Orders: Copies of relevant court orders or judgments that affect the settlement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Insurance

Legal Services

Healthcare

Construction

Manufacturing

Transportation

Financial Services

Professional Services

Real Estate

Mining

Retail

Relevant Teams

Legal

Risk Management

Compliance

Claims

Dispute Resolution

Corporate Affairs

Insurance

Legal Operations

Contract Administration

Relevant Roles

Legal Counsel

Claims Manager

Risk Manager

Compliance Officer

Settlement Administrator

Insurance Underwriter

Corporate Attorney

Litigation Manager

Legal Operations Director

Chief Legal Officer

Claims Adjuster

Dispute Resolution Specialist

Contract Manager

Legal Risk Analyst

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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