A legal doctrine that tolls (delays) the start of the statute of limitations until the injured party knew or reasonably should have known about the injury. In CAM disputes, the discovery rule may extend the lookback period when overcharges were concealed.
States vary widely on whether the discovery rule applies to written contract claims. In states that recognize it (California, Illinois, and many others), the limitations clock may not start running until the tenant first had access to records revealing the overcharge.
A landlord deliberately omitted management fee details from annual reconciliations for six years. When audited, the overcharges totaled $340,000. In a discovery-rule state, the tenant argued the clock started only when the invoices were finally disclosed.
If you are in a discovery-rule state and your landlord refused audit requests or concealed expense details, consult an attorney about whether the full lookback period is extended. Document every audit request and every refusal.
Worried about discovery rule in your lease?
Need to extract lease terms before your audit?
A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
Go to lextract.ioUpload two PDFs. 14 detection rules. Under 15 minutes. Free.
Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
