Section 3.7.22 Statutes of Limitation and Repose

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.7.22 Statutes of Limitation and Repose

Negligence-based claims against design professionals are subject to a two-year statute of limitation.¹⁸⁷ The discovery rule applies and this limitation period does not commence to run until the plaintiff has suffered an injury and is able to bring suit.¹⁸⁸ Claims based on an express contract must be filed within six years of the claim accruing.¹⁸⁹ Efforts to resolve a claim involving faulty construction may toll the statute of limitation while repairs are being attempted.¹⁹⁰

As noted above, the implied-in-law warranty recognized in North Peak would most likely be subject to the four-year general limitations period, because it is not a claim based on contract.¹⁹¹

To prevent the assertion of stale claims, Arizona has enacted a statute of repose that absolutely bars claims based on contract or warranty theories against any person who “develops or develops and sells real property, or performs or furnishes the design, specifications, surveying, planning, supervision, testing, construction or observation of construction of an improvement to real property” eight years after the substantial completion of that improvement (nine years if the defect is discovered in the eighth year).¹⁹² As applied, the statute of repose does not bar negligence claims.¹⁹³ It...