Tolling Agreement
(Statute of Limitations) (AZ)

Summary

This template is a tolling agreement to toll a statute of limitations applicable to claims in an Arizona Superior Court civil case. This template includes practical guidance, drafting notes, and alternate clauses. The purpose of a tolling agreement is to suspend the period of time in which parties may legally bring a lawsuit. A tolling agreement extends the filing deadline and allows parties to negotiate and possibly resolve their dispute without litigation. A statute of limitations is a statutory provision that prescribes the period in which a party must bring a cause of action. Though this period is set by statute, Arizona common law determines when the cause of action "accrues" and thus when the limitations period begins to run. The accrual date depends on the subject matter of the action and is left for judicial interpretation. Absent applicability of the savings statute under Ariz. Rev. Stat. (A.R.S.) § 12-504, a tolling agreement is the best means of extending a statute of limitations to permit ongoing negotiations or other processes that make a delay in commencing a lawsuit desirable. Key in calculating statutes of limitations is identifying the date that the cause of action accrued. See Statutes of Limitations Checklist (AZ) and Computing and Extending Time in Litigation Checklist (AZ). Some accrue on the date that an incident occurs, such as negligence in an automobile accident, and others accrue based on a "discovery" date, such as medical malpractice during a surgery that is not discovered until well after the surgery has taken place. See Walk v. Ring, 202 Ariz. 310, 314-16 (2002). You must also determine whether the accrual date is a matter of law, or if it will be left to the jury to decide. Id. For related information, see Statutes of Limitations Checklist (AZ) and Computing and Extending Time in Litigation Checklist (AZ).