Tolling Agreement
(Statute of Limitations) (KY)

Summary

This template tolling agreement can be used to toll a statute of limitations applicable to existing claims in a Kentucky civil action. This template includes practical guidance, drafting notes, and an alternate clause. The purpose of a tolling agreement is to suspend the period of time in which parties must legally bring a lawsuit. A tolling agreement extends the filing deadline and allows parties to negotiate and possibly resolve their dispute without litigation. Under Kentucky's discovery rule, a cause of action accrues when the injury is, or should have been, discovered. McLain v. Dana Corp., 16 S.W.3d 320, 326 (Ky. Ct. App. 1999). For actions based upon a contract, unless otherwise provided by statute, the statute of limitations is 10 years, with the cause of action accruing when the breach occurs. See Ky. Rev. Stat. § 413.160. For actions based on the recovery of real property, the statute of limitations is 15 years. See Ky. Rev. Stat. § 413.010. For more information on statute of limitations in Kentucky, see Statutes of Limitations (KY).