Tolling Agreement
(Statute of Limitations) (MI)

Summary

This tolling agreement template can be used to toll a statute of limitations applicable to existing claims in a Michigan 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 Michigan law, the statute of limitations begins to run from the time the claim accrues, which is at the time the wrong upon which the claim is based was done regardless of the time when damage results (if not covered by statute). Mich. Comp. Laws Serv. § 600.5827. For actions based upon a breach of sales contract, including breach of warranty, the statute of limitations is four years after the cause of action accrues. Mich. Comp. Laws Serv. § 440.2725(1). For action to recover damages or sums due for breach of contract, in absence of more specific statute, six years after the claim accrues. Mich. Comp. Laws Serv. § 600.5807(9). For actions based upon a covenant in a deed or mortgage of real estate, the statute of limitations is 10 years after the claim accrues. Mich. Comp. Laws Serv. § 600.6507(5). For more information on statute of limitations in Michigan, see Statutes of Limitations Chart (MI). If you need to toll a statute of repose rather than a statute of limitations, see Tolling Agreement (Statute of Repose) (MI).