Legal Definitions - fraudulent-concealment rule

Definition: The fraudulent-concealment rule, also known as the concealment rule, is a legal principle that states a defendant's actions that prevent a plaintiff from discovering the existence of a claim can toll the statute of limitations until the plaintiff discovers or should have discovered the claim.

For example, if a doctor intentionally conceals a medical error from a patient, and the patient only discovers the error after the statute of limitations has expired, the fraudulent-concealment rule may apply. The patient may be able to bring a claim against the doctor because the statute of limitations was tolled until the patient discovered the error.

Another example could be a company that intentionally hides information from investors about the true financial state of the company. If the investors only discover the truth after the statute of limitations has expired, the fraudulent-concealment rule may apply, and the investors may be able to bring a claim against the company.

These examples illustrate how the fraudulent-concealment rule can protect plaintiffs from being unfairly barred from bringing a claim due to a defendant's intentional actions to conceal information.