Standstill Agreements Case Law

When the applicants entered into the third status quo agreement, they still had more than three weeks to initiate proceedings. If the defendant`s position is correct and the applicants were no longer at the time of the expiry of the third status quo agreement, the applicants risked losing their right of appeal under the conclusion of the agreement. The status quo agreement was intended to preserve the rights not to risk their loss. After the finding of the appeal, it appears that the adoption of a procedure in such circumstances before the six-month period has expired and the stay of the proceedings to allow negotiations to be taken, the application of status quo agreements may well take place, provided that the above requirements are met. Contracting parties often enter into status quo agreements as they approach the expiry of a limitation period. This case shows the difference between the suspension of time and the lengthening of time for the purposes of the statute of limitations in a status quo agreement. With respect to interpretation, the Tribunal found that the status quo agreement had suspended time, so that the remainder of the limitation period continued after the expiry of the status quo agreement. Although the court does not deprive applicants of the possibility of (1) Stuart Howard Russell (2) Naomi Patricia Russell v (1) Peter Stone (2) PSP Consultants Limited (3) PSP Consultants Limited (3) PSP Consultants (a firm) [2017] [2017] EWHC 1555 (TCC). This summer, the courts argued in two cases over the importance of certain status quo agreements – Russell v Stone and Muduroglu against Stephenson Harward.

We examine the common pitfalls that the parties should be following in the management of status quo agreements. However, where a status quo agreement is considered the most appropriate option, efforts should be made to ensure that the parties explicitly agree on the expected effects of the non-status quo (i.e., suspend or extend the time limit for the purposes of the restriction) and that the text of the status quo agreement clearly and systematically reflects that intention.