Section 5.9.2.1 Before Initiating the Lawsuit: Purchaser Dwelling Actions

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 5.9.2.1 Before Initiating the Lawsuit: Purchaser Dwelling Actions

In 2002, Arizona enacted legislation referred to as to as Purchaser Dwelling Actions.¹ In 2015, significant amendments were made to that Act.² Under the Act, a purchaser must comply with the Statute before filing a Dwelling Action.³ The only exception to this requirement is for alleged construction defects that involve an immediate threat to the life or safety of persons occupying or visiting the dwelling. If a Purchaser⁴ fails to comply with the Statute, the Dwelling Action shall be dismissed, and if dismissed after the expiration of the Statute of Limitations or Statute of Repose, any subsequent Dwelling Action would be time barred as to the Seller⁵ and the Seller’s construction professionals involved in the construction or design of the dwelling. Absent a showing of good cause, the court shall not stay a Dwelling Action with respect to claims for alleged construction defects involving an immediate threat to the life or safety of persons occupying or visiting a dwelling. The applicable statute of limitations is tolled for a period of 90 days after the Seller receives notice of the claim, or longer if agreed to by the parties. The Statute has also been amended to provide greater involvement of insurance carriers who have issued policies of insurance which provide potential coverage for...