Lease Audit Information
TOPIC OF THE WEEK:
Associates v. Hachar's Inc. (839 S.W.2d 822; 1992 Tex. App.
In this decision, the Fourth District Court of Appeals in
Texas ruled that the 4-year statute of limitation period
on a breach of contract claim did not begin to run at the
time of the final common area maintenance charge accounting
for each respective year.
The "discovery rule" (which is not applicable
in every state) tolls the running of the limitations period
until such time as the injured party discovers or, through
the use of reasonable care and diligence, should have discovered
This is an important case because one could argue that a
billing error that occurred 10 years ago, but discovered
only recently, may not be subject to the applicable statute.
This court also found that a letter agreement signed by
Hachar wherein Hachar agreed to "waive any other violations
of the Lease by Landlord that may have occurred prior to
March 31, 1987" did not stop Hachar from submitting
claims for CAM overcharges, because Hachar was not aware
of the CAM overcharges at the time he signed the "waiver".
(It is important to note that the difference between a "waiver"
and a "release" is significant.)