What Is A Tolling Agreement

On the other hand, this “discovery phase” in a legal dispute can be costly, frustrating and prolonged. Thus, a toll agreement can provide a potential plaintiff with a way to both save money and get more information from the defendant than they would otherwise be willing to offer. Depending on the needs of the parties, most defendants include the following clauses in toll contracts: Keywords: product liability, litigation, toll contract, limitation period, counterclaims, counterclaims, third party claims Even with the additional negotiating margin offered by a toll contract, the plaintiff can still conduct a legal dispute in the event of negotiation failure. In this case, the defendant can benefit from the procedure by being better informed of the plaintiff`s claims. Conversely, the plaintiff may benefit by including provisions in the toll agreement that may force a defendant to submit documents that might otherwise not be available to the plaintiff, except at the discovery stage of a lawsuit. While a toll agreement seems to primarily benefit a plaintiff, there are also good reasons why a defendant might want to enter into a toll agreement. One of the reasons is to give the applicant more time to assess the viability of their application; Without a statute of limitations, which expires soon, a plaintiff may be forced to take legal action just to meet a deadline. If there is a possibility that a dispute can be avoided altogether, it could be advantageous for a defendant to agree to waive the limitation period for a certain period of time or up to certain conditions. While toll agreements are useful tools, they have potential drawbacks. First, determine whether the court has issued an order order with a time limit for counterclaims and the potential conflict of that time with your toll agreement. If your client has a contractual or implied claim for compensation and the co-accused has not agreed to indemnify your client, your client may want clarification on the issue of indemnification before the process.

So, if you think you might soon be a party to a lawsuit, consider buying time with a toll deal. You get some of the benefits of a process strategy without all the costs. .