High-Low Arbitration

An arbitration proceeding where parties agree in advance to high/low parameters that will govern the arbitrator’s award. In essence, the high/low acts as a ceiling and floor that cap or limit the arbitrator’s award.

If the arbitrator’s award is within the high/low range, the award as outlined is paid. If however the arbitrator’s award is below the low, the low figure is guaranteed. If the award is above the high, the award is reduced to the pre-agreed upon high figure.

The high and low figures, unless otherwise agreed, typically are NOT revealed to the arbitrator.