If you’re a business professional, you’ve likely heard of the legal term “tolling” but may not be entirely sure what it means. To put it simply, tolling is a legal doctrine that allows a court to extend or pause the period within which a legal action must occur.
This rule of law allows parties to file their legal action after the statute of limitations has passed. Generally speaking, the reason for tolling a statute of limitations is that a claimant was unable to bring a suit during the established filing period due to some extraordinary circumstances.
For instance, if a defendant pours water on a sidewalk to create an ice rink, this is negligence on their part. If you, as a passerby, slip and injure yourself on the ice, you will be able to pursue litigation against the defendant since the theory of tolling allows you to pursue legal action after the statute of limitations has expired.
It’s important to note that the statutes of limitations vary from one business jurisdiction to another. However, the courts have the discretion to decide if a case is tolled and allow for a little extra time.
Other Examples of Tolling
Though they’re somewhat less frequent, there are other situations where tolling can be applied. In certain cases, the court might toll a statute of limitations if there are complications with the defendant being located. For instance, if the defendant is in another country, the court might toll the statute of limitations so that the person can bring a suit against them.
Tolling can also be applied in cases of bankruptcy. When a debtor files for bankruptcy, this is sometimes extended or paused if they are also involved in a lawsuit. This is done to allow the bankrupt party more time so they can reach a settlement and figure out the necessary steps to take.
Why Tolling Is Important
Tolling is a crucial legal doctrine on multiple fronts. On a practical level, it gives parties an extra shot at pursuing legal action if they fail to meet the statute of limitations. It also helps to ensure that justice is served as parties are not denied the opportunity to present their case should an unusual event arise.
At its core, tolling is an essential legal concept that serves to protect both defendants and plaintiffs from a legal standpoint. It is important that business professionals have a clear understanding of the tolling process and how it can affect their business. By familiarizing yourself with tolling, you can better protect yourself in the event of a legal proceeding.