Tolling Agreement Texas Law

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. 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. 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. Tell me, if you came here, that the client comes in and tells a story that sounds like it`s just a very good case. In fact, it could even be settled without two years of discovery – if you only present the package correctly. They ask some pointed questions about when these events occurred and quickly identify the possibility that restrictions may occur in the very near future.

Of course, you can take immediate action. But you could also be available to the accused on a toll agreement to prevent the race to restrictions, while you and the defendant explore the possibility of regulating without the public filing of a lawsuit. My experience has been that many of the accused will accept these toll agreements, because the only other option is to start litigation immediately. 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. You should also keep in mind that the restrictions will be shortened from the date the defendant is signed and not from the date they told you orally that they were willing to pay a toll. I always insist that the launch date of the toll be the day they agree, and I take the proposed agreement to reflect that. But until they sign, there will probably be no toll, so be careful. Delay favors them, so be on your toes.

Their toll contract should also do more than simply require the application of a certain statute of limitations. It should refer all unrestricted statutes of limitations to a specific court. And it should encompass all other time-based defenses, such as laches or statutes of tranquility or just Estoppel. It will not be helpful to avoid defence restrictions if you lose out because of time under another legal theory. In exchange for the plaintiff delaying the filing of an appeal until the expiry of the toll agreement, the defendant agrees to waive the right to use that time to calculate the expiry period of the claim. With the statute of limitations suspended, the parties may have the necessary time to negotiate and resolve the dispute. Defendants should pay particular attention to the language of the agreement to ensure that it cannot be interpreted to waive the defence`s restrictions on claims prescribed prior to the execution of the agreement. In other words, make sure that, despite the toll agreement, the claim is excluded by restrictions if the restrictions apply before the agreement is signed.