Unfair Competition, Limitations, Delayed Discovery Rule Applies, 1, 11
This case holds that delayed discovery may toll the four year statute of limitations on a public prosecutor’s claim for civil penalties under the UCL for a violation that does not involve fraud. Generally, the common law exceptions to statutes of limitations apply when those statutes are silent, as B&P Code 17208 is, regarding accrual. Delayed discovery has been applied far beyond its origins in fraud, breach of fiduciary duty, and malpractice cases. And delayed discovery is expressly applicable to public prosecutors’ enforcement actions under many statutes. Here, Experian’s alleged violation of CC 1798.82(a), the predicate offense, was particularly hard to discover even when Experian’s data breach became publicly known six months after the breach because the statute permits a delay in notifying victims if necessary for law enforcement purposes. For delayed discovery purposes, inquiry notice to the “relevant actor” is required. Here, the city attorney bringing the action is the relevant actor even though the prosecution is brought in the name of the People. In other enforcement actions in which relief for victims is sought, victims may also be relevant. And notice to the Attorney General may also play a role if, for example, the Attorney General has entered into a tolling agreement with the defendant.