Tolling Agreements

Here’s a small except taken from the current a/e ProNet August Newsletter.  To read the full Newsletter, please click HERE.

Tolling agreements: For whom does that claim toll; does it toll for thee?

By Richard Davies, Esq., Hon. AIA-Managing Partner PA Office

 

Your client receives a letter from an owner about a project.

There has been a loss at the property, a building system is inadequately performing, or they have discovered systemic defects in one of the building’s systems.

The owner does not know the extent or cause of the loss or defects.

The owner thinks your client may be responsible. But they do not want to initiate litigation now. Instead, they want your client to enter into a tolling agreement applicable to any claims it might otherwise assert now.

Do you recommend a tolling agreement, or not…and if so, what must it provide to adequately protect the client’s interests?