What A Tolling Agreement Is

Toll agreements for counter-claims (including counter-rights and third-party claims) can be a useful tool to prevent a co-accused from being openly negative during the period of detention of a product liability case. A toll agreement is usually an out-of-court agreement between the parties that concludes the statute of limitations for term counter-rights. Toll agreements are contractual in nature and must therefore be developed on a case-by-case basis. Before filing an appeal or starting an arbitration procedure, you should consider a simple legal instrument, called a toll agreement, that can help resolve disputes and avoid litigation altogether. If you are about to take legal action, or if you think you are being sued, you should consider proposing a toll agreement. So if you think you might soon be involved in a lawsuit, consider buying some time with a toll contract. You get some of the benefits of a process strategy without any cost. The plaintiff can take advantage of the defendant`s fear by asking the defendant to cooperate in another way. Thus, under the toll agreement, the applicant could require the defendant to provide documents and/or answer questions about the litigation. The client`s consent is obviously necessary and involves commercial considerations and procedural strategies. For example, customers who deal with a co-accused may agree to a toll agreement because they do not want to sue a business partner, but they want to retain their rights. Conversely, some parties may never want to fight against someone they work with. In addition, some clients, who do not appear to share much responsibility for a particular case, may want to actively pursue a counter-action against the target accused.

If your client has insurance, you should also work with the insurance agency to ensure that the agreement does not adversely affect your client`s coverage or that it conflicts with one of the obligations of the insurance policy. 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. Co-accused should consider toll agreements if they wish for additional time to consider filing counter-claims against each other. Under the laws of some states, counter-claims must be filed while proceedings are pending, requiring defendants to decide, before trial, whether to assert counter-claims. In some cases, this decision could be imposed on a defendant before it is clear whether the applicant has a significant liability case.