Section 3.8.7 Arizona Tort Actions vs. Arizona Contract Actions: Generally

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.8.7 Arizona Tort Actions vs. Arizona Contract Actions: Generally

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 2-year statute of limitations,²³ whereas contract actions, including actions for breach of contract and actions for breach of expressed and implied warranties, may be brought within 6 years. The striking disparity in limitations period would appear to militate against tort. However, the 2-year tort limitation period commences upon discovery, which could occur eons after the completion of a construction project.²⁴ In contrast, contract actions are subject to a Statute of Repose,²⁵ such that a breach discovered more than 9 years after completion would be barred.

Punitive damages, however rare under Arizona’s restrictive standard, are available in tort,²⁶ but not in contract²⁷- neither in a breach of contract action, nor even in an action for the breach of implied warranties.²⁸ Comparative fault is...