3.8.7 Arizona Tort Actions vs. Arizona Contract Actions: Generally

• Jurisdiction: Arizona

As we make the transition from product liability law to construction law, it may prove useful to identify the most significant differences between Arizona tort actions and Arizona contract actions. Negligent actions are governed by a two year statute of limitations,^[22] whereas contract actions, including actions for breach of contract and actions for breach of expressed and implied warranties, may be brought within six years. The striking disparity in limitations period would appear to militate against tort. However, the two year tort limitation period commences upon discovery, which could occur eons after the completion of a construction project.^[23] In contrast, contract actions are subject to a statute of repose,^[24] such that a breach discovered more than nine years after completion would be barred.

Punitive damages, however rare under Arizona’s restrictive standard, are...