What Is a Legal Tolling Agreement

A legal tolling agreement, also known as a tolling agreement or a statute of limitations agreement, is a legal document that suspends or extends the time limit for filing a lawsuit. Tolling agreements are commonly used in situations where a potential claimant is not yet ready to file a lawsuit, but wants to preserve their legal rights in case they decide to do so later.

In essence, a tolling agreement is a contract between two parties that temporarily stops the clock on the statute of limitations for a particular claim. The statute of limitations is the legal deadline for filing a lawsuit, after which the claim is barred forever. By entering into a tolling agreement, the parties agree to postpone the start or end date of the statute of limitations, giving the potential claimant more time to investigate the claim and decide whether to pursue legal action.

There are several circumstances where a tolling agreement may be beneficial. For example, a potential claimant may need more time to gather evidence, consult with legal counsel, or negotiate a settlement before deciding whether to file a lawsuit. In some cases, the claim may involve complex legal or factual issues that require additional time to resolve. Alternatively, the parties may agree to a tolling agreement so that they can continue to negotiate a potential settlement without the pressure of an impending deadline.

Tolling agreements can take various forms and may include different terms depending on the specific circumstances of the case. Generally, tolling agreements will identify the parties involved, specify the claim at issue, and set out the duration of the tolling period. The agreement may also include provisions governing the parties` respective obligations during the tolling period, such as limiting the potential claimant`s ability to file a lawsuit during that time.

It`s important to note that tolling agreements are not a one-size-fits-all solution and should be carefully crafted to ensure they comply with state and federal laws. An experienced attorney with expertise in the relevant area of law can help draft a tolling agreement that meets the parties` needs while also protecting their legal rights.

In conclusion, a legal tolling agreement is a powerful tool for preserving a potential claimant`s legal rights while allowing them additional time to decide whether to file a lawsuit. By entering into this kind of agreement, the parties can avoid the pressure of an impending deadline and continue to negotiate a potential settlement or conduct further investigation of the claim. If you are considering a tolling agreement, it`s important to consult with an experienced attorney to ensure that the agreement meets all legal requirements and protects your interests.