A toll agreement is a “pause” agreement in which the parties agree that the statute of limitations will expire for an agreed period. These types of agreements are legal and applicable in Maryland. Milton Co. Council of Unit Owners of Bentley Place Condo., 121 Md. App. 100, 117-18, 708 A.2d 1047 (1998). With a toll agreement, the parties to the dispute have an air to find a solution that avoids the costs and burdens of litigation. The only right to a toll agreement is the right of a party to argue too much time during the toll period for legal action to proceed. 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.
There are many reasons why we could benefit from a toll agreement. As a general rule, toll agreements are used to give parties additional time to assess the validity and legitimacy of claims and damages, without having to file an appeal within the required time frame. Other reasons are common: 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. On the one hand, in the absence of a toll agreement, personal, private and potentially harmful information may be brought into an action brought by the applicant in order to preserve a right.