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. 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. Co-accused should consider toll agreements if they wish for additional time to consider filing counter-claims against each other. Under the laws of some states, counter-claims must be filed while proceedings are pending, requiring defendants to decide, before trial, whether to assert counter-claims. In some cases, this decision could be imposed on a defendant before it is clear whether the applicant has a significant liability case. When counter-claims are invoked, the defendants may focus too much on the transfer of responsibility between them and involuntarily assist the plaintiff in determining liability or increasing the value of the case by developing facts that have been overlooked by the applicant. 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. A defendant can also benefit from the procedure by being better informed of the applicant`s rights and positions. Thus, toll agreements can help inform parties about disputes and avoid certain costs.
That`s a good reason to put it away as a reference. The particular facts may not be repeated and we do not agree on whether the toll agreements are a good idea. Sometimes they are and sometimes they are not. However, if you design and execute one, be careful and clear. Even before COVID-19, many companies were not ready to take legal action. In addition to litigation costs, there is a diversion of the company`s human resources to meet with consultants, waiting deposits, answers and other tedious responsibilities. During COVID-19, some companies are closed by the executive order, while others have moved to remote work. Efforts to investigate have focused on the elimination of non-essential expenses, redundancies and the closure of underperforming initiatives. Time and money resources are limited and these resources can be used more appropriately to maintain activity. This article is the first in a series that will address issues affecting businesses during the economic uncertainty of COVID-19. In this article, I will discuss how toll agreements in Maryland can be used as an instrument to preserve corporate resources and protect their interests through the dispute resolution process. It turned out that the equipment manufacturer`s lawyers had sent the applicants` lawyer a toll agreement for the cases in which the device was concerned, according to which the toll period would be triggered by lawyers without notification of the applicants.