What Does a Tolling Agreement Do
4 avril 2023
When two parties are involved in a legal dispute, it can be a long and costly process to reach a resolution. One option to avoid protracted litigation is to agree to a tolling agreement. This legal document can be a crucial tool in resolving disputes without the need for extensive court time and expense.
A tolling agreement is a contract between the parties involved in a legal dispute that suspends the statute of limitations for bringing a claim, effectively extending the time limit for filing a lawsuit. The agreement can also serve to pause the timeline of certain legal proceedings, such as the discovery process or hearings. In essence, the tolling agreement temporarily stops the clock on the legal timeline, giving both parties more time to reach a resolution.
One of the primary benefits of a tolling agreement is that it allows parties to continue working towards a solution without the pressure of impending legal deadlines. This can also allow both sides to more thoroughly investigate the dispute and gather any necessary evidence.
Another advantage of a tolling agreement is that it can provide opportunities for the parties to negotiate a settlement outside of court. By giving both sides more time to work on a resolution, they can potentially avoid the expense and uncertainty of going to trial.
Tolling agreements are commonly used in several different types of legal disputes. For example, in employment disputes, a tolling agreement might be used to give both parties more time to negotiate a severance package. In personal injury cases, a tolling agreement could be used to extend the time limit for filing a lawsuit while the parties work towards a settlement.
It is important to note that the specifics of a tolling agreement will vary depending on the nature of the dispute. Some tolling agreements may be limited to specific legal proceedings, while others may be more broad and comprehensive. Additionally, a tolling agreement may include provisions for confidentiality or non-disclosure, allowing the parties to work towards a resolution without affecting their reputation or public perception.
In summary, a tolling agreement is a legal tool that can be helpful in resolving disputes outside of court. By suspending the statute of limitations and pausing certain legal proceedings, the parties create more time and space for negotiation and investigation. If you find yourself involved in a legal dispute, consider working with an experienced attorney to determine if a tolling agreement is a viable option for your particular case.