Whats A Tolling Agreement

In exchange for the plaintiff`s agreement to delay the filing of a claim until the toll agreement expires, the defendant agrees to waive the right to use this buffer period to calculate the forfeiture of the claim in accordance with the limitation period. With the suspension of the limitation period, the parties have the time they need to negotiate and resolve the dispute. Part of the pressure when filing a lawsuit is to ensure that it will be filed before the expiry of the applicable limitation period. A toll agreement is a written agreement signed by both parties on a possible lawsuit and suspends the limitation period for an agreed period of time. If you agree to charge counterclaims until the end of the hearing of the plaintiff`s underlying case, this can lead to inefficiencies and lengthy litigation. Make sure your customer understands this before accepting the toll agreement. This particular issue can be resolved by (1) allowing counterclaims to be filed during the toll period if a party chooses to do so, or (2) terminating the pre-trial toll period and having sufficient time to allow for counterclaims to be filed if necessary. Due to the toll agreement, the plaintiff`s lawyer should have a firm grip on all limitation period issues. .

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