Tolling Agreement
(Statute of Limitations) (TN)

Summary

This tolling agreement template can be used to toll a statute of limitations applicable to existing claims in a Tennessee 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 Tennessee's discovery rule, the statute of limitations begins to run from the date the injured party either knows or should have known by the exercise of reasonable diligence that a cause of action arises from the wrongful conduct. See John Kohl & Co. P.C. v. Dearborn & Ewing, 977 S.W.2d 528 (Tenn. 1998). For actions based upon a contract, obligation, or liability, express or implied, the statute of limitations is 3 years, with the cause of action accruing when the breach occurs. See Tenn. Code Ann. § 28-3-105. For actions based upon contracts for sale: 4 years, also with the cause of action accruing when the breach occurs. See Tenn. Code Ann. § 47-2-725(1). For more information on statutes of limitations in Tennessee, see Statutes of Limitations (TN). If you need to toll a statute of repose rather than a statute of limitations, see Tolling Agreement (Statute of Repose) (TN).