Tolling: Overview, definition, and example
What is tolling?
Tolling refers to the legal suspension or extension of the time period in which a party is required to take certain actions, such as filing a lawsuit or fulfilling an obligation. Tolling is typically used in the context of statutes of limitations, which set the maximum time within which legal actions can be initiated. When tolling occurs, the clock on the statute of limitations is paused, effectively extending the time a party has to take legal action or assert their rights. Tolling can happen under certain circumstances, such as when the injured party is a minor, mentally incapacitated, or unaware of the harm they have suffered until a later date.
For example, if a person is injured in a car accident but does not discover the full extent of their injuries until several months later, the statute of limitations for filing a lawsuit might be tolled until the person realizes the injury.
Why is tolling important?
Tolling is important because it ensures fairness in legal proceedings by accounting for situations where a party may not be able to assert their rights or take action within the standard time frame due to factors beyond their control. It prevents legal time limits from unfairly disadvantaging individuals who may not have been aware of their claims or were prevented from pursuing them. Tolling ensures that individuals and entities have a reasonable opportunity to seek justice, even when delays are caused by external circumstances.
Understanding tolling through an example
Let’s say an individual is diagnosed with a medical condition years after a possible exposure to a harmful substance at work. The statute of limitations for filing a lawsuit related to the exposure might normally expire within two years of the incident. However, the individual might not discover the link between their condition and the exposure until later. In this case, tolling of the statute of limitations would allow the individual to file a lawsuit even after the original time period has passed, as the condition was not discovered until later.
In another example, a contract requires a party to fulfill an obligation within 90 days, but due to the other party's fraudulent conduct, the injured party is unaware that the contract terms were breached. Tolling of the time period might occur until the injured party becomes aware of the breach, thus allowing them more time to act.
An example of a tolling clause
Here’s how a tolling clause might appear in a legal agreement or contract:
“The time period for bringing any claims under this Agreement shall be tolled in the event that the Party asserting the claim is unable to assert it due to incapacity, fraud, or any other legal impediment. The tolling period shall last for the duration of the period during which the Party is unable to act, and the statute of limitations will resume once the impediment is removed.”
Conclusion
Tolling is a legal concept that allows for the suspension or extension of time limits, such as statutes of limitations, in certain circumstances. It ensures fairness in the legal process by allowing parties to take action even if they were unable to do so within the standard time frame due to factors like ignorance of the claim, incapacity, or fraud. Tolling helps ensure that individuals and entities are not unfairly denied justice due to time-related constraints, providing a more flexible and just legal system.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.