Tolling Agreements: What They Are And When To Use One (2025)

What Is a Tolling Agreement?

A tolling agreement is a contract between a plaintiff and a defendant to pause the statute of limitations. These arrangements are most often seen in personal injury cases, such as:

• Slip and fall or trip and fall cases
• Truck and auto accidents
• Medical malpractice claims
• Construction accidents
• Bicyclist or pedestrian injuries

Litigants with another type of lawsuit, such as a contract dispute, a premises liability lawsuit, or other civil matters, may also use tolling agreements in their cases. To understand why the involved parties might sign a tolling agreement, you must first understand how statutes of limitations work.

What Are Statutes of Limitations?

A statute of limitation is any law that states how long an individual has to file a legal claim in court. These laws are state- and claim-specific and can range from two to four or more years in length. They function similarly to a “countdown clock,” indicating to those considering filing a legal claim how long they have left to do so.

For example, one state’s personal injury statute of limitations might give injured parties three years to file a claim, while another’s might only give them two years to do the same.

The statute of limitations usually begins when a crash, breach, or other legal injury occurs. Once it starts, very few events can “toll,” or pause, the countdown. An injured party can lose their right to file a lawsuit and seek compensation if they don’t act before the countdown expires.

Elements of a Tolling Agreement

The key element of any tolling agreement is the willingness of both parties to suspend the applicable statute of limitations temporarily. The parties must agree not only to suspend it but also on how long it should be paused. Neither party can unilaterally decide to pause or stop the statute of limitations.

A tolling agreement typically doesn’t contain an admission of liability by either party. It also rarely contains promises or agreements beyond pausing the statute of limitations. For example, a tolling agreement doesn’t guarantee that the parties will reach a car accident settlement.

Benefits of Tolling Agreements in Civil Cases

The primary advantage of tolling the statute of limitations is that it gives the parties additional time to pursue an out-of-court settlement. Both the injured plaintiff and the defendant in a civil case might desire this outcome, albeit for different reasons.

Why Plaintiffs Favor Tolling Agreements

Many civil plaintiffs benefit from the certainty and speedy resolution that settlements afford. Resolving a civil injury claim through the judicial process can take months, and there are no guarantees that the plaintiff will succeed at trial. A judge or jury could award less damages than the plaintiff sought or deny the plaintiff’s claim altogether.

With a settlement agreement, the plaintiff is guaranteed to receive whatever compensation they and the other party agree to according to a mutually agreeable time frame. It’s common for plaintiffs to receive compensation through a settlement much faster than they would by going through the court system.

How Defendants Benefit From Tolling Agreements

You might think that defendants accused of wrongdoing have nothing to gain from giving the injured plaintiff more time to bring a claim. After all, once the statute of limitations expires, the plaintiff is rarely given more time to pursue their case — the defendant can often dismiss the plaintiff’s claim without paying them a single dollar in compensation.

However, when the plaintiff has a valid claim against the defendant, the latter stands to save time and money by settling the claim before it goes to court. Injury victims might settle for less than they would seek in court. Even if they don’t, defendants often save money on legal fees by settling rather than contesting a case in court.

If the plaintiff believes they’re close to exceeding the statute of limitations, they may file a claim simply to preserve their rights. By agreeing to toll the statute of limitations, a defendant can encourage a plaintiff to continue settlement negotiations, potentially saving themselves a considerable amount of money.

Get Matched With a Qualified Attorney

Before entering into a tolling agreement, it’s important to consider the potential benefits and drawbacks. An experienced lawyer can explain both to help you make an informed decision. It’s also advisable to have your tolling agreement drafted by a knowledgeable attorney.

If you have questions about tolling agreements or your rights more generally, ConsumerShield can help. Complete our online form, and we’ll connect you with a qualified attorney in your area who can answer your questions and provide you with trustworthy legal representation.