A tolling agreement in New York is a legal agreement between two parties that will pause the statute of limitations while they attempt to reach a settlement outside of court. In other words, it’s an agreement between the plaintiff and the defendant that allows them to extend the deadline for filing a lawsuit or claim.
This agreement is common in the legal field when parties are trying to negotiate a settlement. It can be beneficial for both parties because it allows them to negotiate without the pressure of a strict deadline looming over the negotiation process. The tolling agreement is typically used in cases where the statute of limitations is about to expire, but the parties need more time to come to an agreement.
In New York, the statute of limitations for most civil claims is three years. This means that if you want to file a claim against someone, you have three years from the date the incident occurred to file it. However, if the parties agree to a tolling agreement, the deadline will be paused until the agreement is terminated. The tolling agreement can be terminated once the parties reach a settlement, or if they decide to go to court.
If you’re considering a tolling agreement in New York, it’s important to make sure that the agreement is signed by both parties. It’s also important to make sure that the agreement includes all of the terms and conditions that you want to be included. For example, the agreement can specify the length of time that it will be in effect. The agreement can also include provisions for how the parties will communicate during the negotiation process.
In addition to extending the statute of limitations, a tolling agreement can also help preserve evidence. When the statute of limitations is paused, it allows both parties to gather more evidence and prepare their case more thoroughly. This can be especially helpful in complex cases where there are lots of documents or evidence to sort through.
Overall, a tolling agreement in New York can be a useful tool for parties who are trying to negotiate a settlement outside of court. It allows them to extend the deadline for filing a lawsuit or claim, which can be beneficial for both parties. However, it’s important to make sure that the agreement is signed by both parties and includes all of the terms and conditions that you want to be included.