A tolling agreement is a legal contract between two parties that extends the applicable statute of limitations on a claim or legal action. In the state of New York, tolling agreements are commonly used in a variety of legal disputes, including commercial litigation, personal injury cases, and employment law matters. Understanding the specifics of tolling agreements under New York law is important for both attorneys and their clients.
One of the main benefits of tolling agreements is that they allow parties to “stop the clock” on a statute of limitations deadline, giving them more time to investigate a claim, negotiate a settlement, or prepare for trial. Without a tolling agreement, the statute of limitations can bar a legal claim from being brought in court, even if the merits of the case are strong.
However, tolling agreements in New York are subject to certain requirements and limitations. First and foremost, the agreement must be in writing and signed by both parties involved. Additionally, the agreement must specify the claims or causes of action that are being tolled, as well as the duration of the tolling period.
Under New York law, tolling agreements can only extend the statute of limitations for up to six months. If the agreement is not renewed or the case is not resolved within that timeframe, the statute of limitations will expire. It’s also important to note that tolling agreements do not affect other procedural deadlines or time limits in a legal case.
Another important consideration for parties entering into a tolling agreement in New York is the potential impact on the discovery process. During the tolling period, parties may continue to engage in discovery and other pre-trial activities, but they must do so within the confines of the agreement. If the tolling agreement is not clear about the scope of discovery, disputes may arise later in the litigation process.
Finally, it’s worth noting that tolling agreements under New York law are not a guarantee of success in a legal dispute. Even with the extra time afforded by a tolling agreement, parties must still present strong legal arguments and evidence to prevail in court.
In conclusion, tolling agreements under New York law can be a useful tool for parties involved in legal disputes, but they must be entered into carefully and with a clear understanding of the requirements and limitations involved. Any party considering a tolling agreement should consult with an experienced attorney to evaluate whether it is the best course of action for their particular case.