Section 3.8.11 The ELR in Arizona

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.8.11 The ELR in Arizona

We turn now to the application of the ELR in the Arizona construction industry.

In Flagstaff Affordable Housing Ltd. P’ship v. Design Alliance, Inc.,⁴⁰ the Supreme Court of Arizona held that the ELR precludes tort recovery of economic losses in the construction defect setting. There, an owner brought suit, in tort, against its architect, contending that the architect was negligent in failing to design the owner’s apartment project in compliance with federal accessibility guidelines. As a result, the owner was sued by the U.S. Department of Housing and Urban Development and was compelled to settle with HUD. The owner...