Does every state have a discovery rule for CAM disputes?

No. States that broadly recognize the discovery rule for contract claims include California, Illinois, and many others. Texas uses a more limited discovery rule. Always confirm with an attorney in the client jurisdiction.

Can running a CAMAudit establish when the overcharge was discovered?

Yes. A CAMAudit review creates a timestamped record showing when specific overcharges were identified. In a discovery-rule state, this documentation can establish the discovery date if a landlord later argues the claim is time-barred.

Legal & Compliance

Discovery Rule

Last updated: May 2026

A legal doctrine that 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 by the landlord.

Firm impact

When a landlord has withheld records, refused audit requests, or omitted expense detail from reconciliations over multiple years, the discovery rule argument extends the recovery window in states that recognize it. Your firm's ability to document the concealment is central to the argument.

How this gets abused

A landlord deliberately omitted management fee details from annual reconciliations for six years. When audited, the overcharges totaled ,000 In a discovery-rule state, the tenant argued the clock started only when the invoices were finally disclosed.

Practitioner note

If you are in a discovery-rule state and the landlord refused audit requests or concealed expense details, document every audit request and every refusal as part of the client file. This documentation is the evidentiary foundation of the discovery-rule argument.