If you are about to take legal action, or if you think you are being sued, you should consider proposing a toll agreement. On the other hand, this „discovery phase“ can be costly, frustrating and tedious in a trial. For example, a toll agreement may provide a potential complainant with the opportunity to save money and obtain more information from the defendant than he would normally offer. 1. Consider the extent and duration of toll agreements. While a toll agreement seems to benefit a plaintiff in the first place, there are also some good reasons why a defendant wants to enter into a toll agreement. One reason is to give an applicant additional time to assess the feasibility of their application; Without a statute of limitations, an applicant may be forced to take legal action only to meet a deadline. Where litigation can be avoided, it may be advantageous for a defendant to agree on the term limit for a specified period of time or until certain conditions are imposed. 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. As this is a private agreement between the parties – unless the agreement is ambiguous – a court will not look beyond the document of the agreement to determine what claims the parties intended to keep. A broad language of the toll agreement could retain independent or unknown claims. Too narrow a language can limit the remedies available for litigation. Consultation with a lawyer is necessary to properly define the scope of the litigation at issue. This mutual fear helps to bring the parties together and formally resolve the issue. Since an agreement is more likely under the toll agreement, the parties enjoy the benefits of litigation (threat of a possible money decision against the defendant) without initiating litigation or incurring costs. 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. When counter-claims are invoked, the defendants may focus too much on the transfer of responsibility between them and involuntarily assist the plaintiff in determining liability or increasing the value of the case by developing facts that have been overlooked by the applicant.
A defendant can also benefit from the procedure by being better informed of the applicant`s rights and positions. Thus, toll agreements can help inform parties about disputes and avoid certain costs. Part of the printing when filing a complaint is certain that they will file before the applicable statute of limitations. A toll agreement is a written agreement signed by both parties for a possible appeal that suspends the statute of limitations for an agreed period. 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.