Hilo Settlement Law and Legal Definition
Hilo settlement refers a settlement agreement which is considered as an alternative to a full settlement of the case. The hilo settlement can be considered prior to trial or after trial begins. The hilo settlement agreement is similar to a typical settlement agreement, with some added features.
The theory behind the agreement is that a plaintiff and a defendant insure the other against an excessive verdict. Hilo settlement agreements are legal and enforceable. However, there are limits to the type of agreements that can be entered into.
The following is a case law defining hilo settlement:
A hilo settlement is an agreement in which a defendant agrees to pay the plaintiff a minimum recovery in return for the plaintiff's agreement to accept a maximum amount regardless of the outcome of the trial.[ Rodriguez v. Villarreal, 314 S.W.3d 636 (Tex. App. Houston 14th Dist. 2010)].
Hilo settlement is also known as high-low agreement. It is a form of contract, whereby, its construction is governed by legal principles applicable to contracts generally.