What Does Continuing Undertaking Rule Mean?

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What does Continuing Undertaking Rule mean? Read on to discover the definition & meaning of the term Continuing Undertaking Rule - to help you better understand the language used in insurance policies.

Continuing Undertaking Rule

Continuing Undertaking Rule

A rule of tort law that tolls (i.e., temporarily stops from running) a statute of limitation for bringing a claim of negligence. (See Tolling a Statute of Limitations.) The continuing undertaking (also known as the continuous treatment rule) rule is most often applied in cases when professional services have been provided over an extended period of time rather than on a single date. For example, the continuing undertaking rule would apply in the case of a client who received legal advice from an attorney during a 1-year period. In this situation, the statute of limitations is tolled until the attorney had concluded providing legal advice on this matter. The rationale for the continuing undertaking rule is that a claimant would be unable to discover the lawyer's negligence until the lawyer ceased providing advice.

We hope the you have a better understanding of the meaning of Continuing Undertaking Rule.

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