A tolling agreement is an agreement to suspend or extend the statute of limitation (the time within which you are required to file a lawsuit or lose the right to sue). These types of agreements are typically proposed to delay the filing of a lawsuit while parties attempt to settle the matter in dispute. However, you should proceed with caution when considering such agreements, because Mississippi has another law that forbids changing certain statutes of limitation.
Recently, the Mississippi Supreme Court considered these types of agreements again. Although the Court decided that the statute of limitation could be tolled for certain kinds of actions, the Court also ruled that the statute of repose cannot be touched. The statute of repose is a maximum period of time under which a lawsuit can be filed no matter what the circumstances may be.
The Court also listed five requirements that must be met in those situations where a tolling agreement is allowed:
A tolling agreement may be enforceable if (1) it is not prohibited by statute; (2) it contains a definite and reasonable time period; (3) it is formed after the cause of action has accrued, or in the instance of a statute of repose, after the plaintiff has notice of the cause of action; (4) it is not made at the same time as, or part of , the obligation sued upon; and (5) it is entered into before the expiration of the applicable limitations period.
If you are considering entering into a tolling agreement, don’t make that decision alone. You can be giving up substantial rights if a Mississippi court refuses to recognize the agreement. Before signing, consult with legal counsel experienced in contract law.