Tolling Agreement Definition

Part of the printing when filing a complaint is certain that they will file before the applicable statute of limitations. A toll agreement is a written agreement signed by both parties for a possible appeal that suspends the statute of limitations for an agreed period. In exchange for the plaintiff delaying the filing of an appeal until the expiry of the toll agreement, the defendant agrees to waive the right to use that time to calculate the expiry period of the claim. With the statute of limitations suspended, the parties may have the necessary time to negotiate and resolve the dispute. People who enter into a toll contract should check whether they can invalidate their liability insurance. The agreement should be drafted in such a way that the rights for which the statute of limitations has already expired are not revived and to ensure that the agreement only indicates the statute of limitations. The agreement should not include an admission of wrongdoing unless you have agreed. A toll agreement is an agreement to waive the right to request the dismissal of disputes due to the expiry of a statute of limitations. Its purpose is generally to give a party additional time to assess and determine the legality and viability of its rights and/or the amount of its harm, without the need for legal action.

During this period, the parties waive any prescription defence that would otherwise occur during such a period. If you are about to take legal action, or if you think you are being sued, you should consider proposing a toll agreement. The threat of possible litigation is the elephant in space that makes an agreement on tolls effective. A savvy potential complainant may use this elephant as an advantage, as a potential accused may well lean back to not be prosecuted. Under the toll agreement, counsel for the applicant should have a firm understanding of all prescription issues. Information gathered informally during negotiations should not be subject to costly requests for investigation. This mutual fear helps to bring the parties together and formally resolve the issue. Since an agreement is more likely under the toll agreement, the parties enjoy the benefits of litigation (threat of a possible money decision against the defendant) without initiating litigation or incurring costs.

On the other hand, this “discovery phase” can be costly, frustrating and tedious in a trial.