June 8, 2015
High-Low Arbitration or Bracketed Arbitration
High-low or bracketed arbitration is when the parties agree that the award should fall within a range of outcomes.
Most trials and arbitrations deal with liability and damages. The parties may agree on one or the other.
If the parties don’t agree on liability, that is an issue for arbitration. If liability is established, the outcome would depend on the high-low range the parties agree to.
Or where liability is agreed, the only issue is damages and the award falls into the high-low range.
It is possible for the parties to choose not to share the high-low range with the arbitrator until after a decision is made. If the decision falls outside the range, then it is moved to either the high or low number.