What Is A Tolling Agreement In Texas

The danger of a possible legal dispute is the elephant in the room, which makes a toll agreement effective. A shrewd potential plaintiff may use this elephant as an advantage, as a potential defendant may well bend over backwards not to be sued. In exchange for the plaintiff`s agreement to delay the filing of a claim until the toll agreement expires, the defendant agrees to waive the right to use this buffer period to calculate the forfeiture of the claim in accordance with the limitation period. With the suspension of the limitation period, the parties have the time they need to negotiate and resolve the dispute. This may seem obvious, but keep in mind that this agreement does not impose any restrictions only on the parties to the agreement. Any potential defendant that you do not include in the toll agreement may claim restrictions as part of the initial standard period. Defendants should pay particular attention to the wording of the agreement to ensure that it cannot be construed as a waiver of the limitation defense for claims that are time-barred prior to the performance of the agreement. In other words, make sure that if restrictions were in place before the agreement was signed, the claim remains excluded by restrictions, regardless of the toll agreement. Defendants should also ensure that the agreement imposes restrictions and other temporal filings on any counterclaim. Finally, defendants should specify claims for which restrictions are imposed as narrowly as possible – especially in a commercial context where the parties may have multiple transactions and relationships.

The toll agreement must specify how long the parties wish to suspend the limitation period. Section 1983 allows a person to take legal action against any person who acts under the “color of the law” and violates the rights protected by the state of the person. Although it is a federal law, actions under section 1983 are subject to the Forum State`s statute of limitations for tort claims. Under Texas law, the statute of limitations for most assault prosecutions is two years from the time the cause of action “occurs,” which usually means the time the violation occurs. However, the law also provides that a person “under the age of 18” is “legally disabled” and that if a person is “legally disabled, if the cause of action arises, the time of disability is not included in a statute of limitations”. Commonly referred to as the “toll law”, this effectively means that a person who has been injured as a minor can usually take legal action at any time until they are 20 years old. Before you take legal action or initiate arbitration, you should consider a simple legal tool called a toll agreement, which can help resolve disputes and avoid litigation entirely. Part of the pressure when filing a lawsuit is to ensure that it will be filed before the expiry of the applicable limitation period. A toll agreement is a written agreement signed by both parties on a possible lawsuit and suspends the limitation period for an agreed period of time.


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