What Is A Tolling Agreement Canada

[22] In my view, Bilfinger does not defend the applicant`s broad and radical argument. The decision in Bilfiinger and subsequent cases was fundamentally based on the overriding need to ensure that the procedural procedure was not affected by agreements between or between the defendants, as well as on the fear that the agreement at issue in Bilfiinger might have had the effect of altering the adversarial nature of the litigation landscape. A toll agreement sets a deadline for the parties to negotiate before a plaintiff has to take legal action to enforce their legal rights. As a rule, neither party wants to spend energy and money to prove their case in court. For example, a toll agreement urges the parties to compromise on their positions and reach an agreement. This implicit threat of litigation in the event of a failure of the negotiations puts pressure on both parties to settle the dispute. Due to the toll agreement, the plaintiff`s lawyer should have all limitation period issues firmly under control. Information collected informally in the course of negotiations does not have to be subject to costly requests for investigation. Instead of making a claim, an applicant may enter into a toll agreement with the other party to suspend limitation periods until the expiry of protective measures taken in relation to COVID-19. The Alberta Limitations Act provides that if a toll agreement expressly provides for the extension of a limitation period, the limitation period applicable under the agreement will be amended. There is no prescribed limit on how long the limitation period may be extended; The only requirement is that the contract be written and signed by the injured party.

In the lawsuit before Bilfinger, the plaintiffs filed a lawsuit over a construction contract, and there were two groups of defendants. The Metro Vancouver defendants were represented by a law firm, and another defendant, HMM, was represented by another law firm. On the day of a case management hearing, counsel for the Metro Vancouver defendant told plaintiffs` counsel that the Metro Vancouver and HMM defendants had entered into a JDA (which included a toll agreement) more than four years earlier. The plaintiffs filed a motion for judgment against all defendants on the grounds that the JDA should have been disclosed upon receipt and that the non-disclosure was an abuse of process to be punished by the court. Before you take legal action or initiate arbitration, you should consider a simple legal tool called a toll agreement, which can help resolve disputes and avoid litigation entirely. On the other hand, this “discovery phase” in a legal dispute can be costly, frustrating and prolonged. Thus, a toll agreement can provide a potential plaintiff with a way to both save money and get more information from the defendant than they would otherwise be willing to offer. At the inso in the Fowler case, the discussion on jurisdiction over limitation periods takes place in the civil context north of the border. Generally, in Ontario, limitation periods for civil actions are governed by Ontario`s Limitations Act, which provides for a limitation period of two years (instead of five in the United States and six under the Securities Act) from the date of discovery. According to the Statute of Limitations, agreements to suspend or extend the limitation period, i.e. toll agreements, are also permitted. There is no prescribed time frame as to how long a restriction can be extended, but toll agreements require both a clear and unambiguous application and confirmatory acceptance, as recently stated in PQ Licensing S.A.c.

LPQ Central Canada Inc., 2018 ONCA 331. Alternatively or in addition, the parties may decide to enter into toll agreements while operations are disrupted by COVID-19 measures. .