Under a sliding scale agreement the settling defendant guarantees a minimum payment that decreases as the plaintiff recovers from non-settling defendants. It may or may not require the settling defendant to remain at trial.
Disclosure requirements vary.
Alternative Names:
Sliding Scale Recovery Agreement, Guaranteed Verdict Agreement
Why it Matters?
The economic effect is the same as a Mary Carter agreement even where the settling defendant is dismissed, since its ultimate payment depends on the plaintiff's success against the remaining parties. That alignment affects testimony from the settling defendant's witnesses and employees, which is the practical concern where the defendant is dismissed and the agreement is not disclosed. Discovery into settlement terms with dismissed parties is warranted.
Frequently Confused with
Related terms
Frequently asked questions
How does this differ from a Mary Carter agreement?
Why does it matter after dismissal?
