Although no business owner likes to contemplate the idea of being sued or pursuing a lawsuit, civil suits are an inevitable part of the cost of doing business. When a dispute arises, an important first step is determining the deadline for filing a claim. This deadline is known as a “statute of limitations.” If an individual fails to file their claim by this deadline, he or she is barred from pursuing that specific claim.
Arizona business owners should familiarize themselves with some of the most common statutes of limitation they may face, these statutes of limitation include:
Breach of Contract
The statute of limitations for oral breach of contract is three years and is governed by Ariz. Rev. Stat. Ann. Section 12-543(1). The statute is six years for written breach of contract under Section 12-548. The statute of limitations for breach of contract for a sale is four years. This deadline is governed by Sections 12-544(4) and 47-2725(A) of the Arizona Revised Statutes.
Breach of Fiduciary Duty
A fiduciary duty is a legal responsibility to act in the best interest of another person or organization, including a business. For example, a board of directors has a fiduciary duty to act in the best interest of its shareholders. In Arizona, the statute of limitations for breach of fiduciary duty is two years. These deadlines are outlined in Ariz. Rev. Stat. Ann. §12-542.
Like most states, Arizona has legislation in place that protects the public from deceptive business practices that prey upon consumers. In Arizona, a seller or advertiser of objects, wares, goods, commodities, intangibles, real estate, or services engages in “consumer fraud” when it suppresses, conceals, adds, or fails to disclose a material fact through deception, an unfair act or practice, a false statement, a false pretense, a false promise, or a misrepresentation. The statute of limitations for consumer fraud in Arizona is just one year and is found under Ariz. Rev. Stat. Ann. § 12-541(5).
According to the Restatement of Torts (2d) § 552, negligent misrepresentation occurs when “one who, in the course of his business, profession or employment, or in any other transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information.” Under Section 12-542 of the Arizona Revised Statutes, the statute of limitations for this cause of action is two years.
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This website has been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.