How to Sue a Contractor in Arizona

In short, anytime that a contractor in Arizona causes another party or person to suffer physical or economic damages, they may be held civilly liable. In the state of Arizona, contractors are most often sued when they fail to follow an agreed-upon contract.

For instance, if a contractor fails to perform all of the work they promised to perform under the contract or misses deadlines stated in a contract, then you may sue them for breach of contract. Other common examples of when you can sue a contractor in Arizona include if they:

• Complete the job but do so unsatisfactorily;
• Complete the job, but their work violates safety standards or local zoning ordinances;
• Accepted a deposit or payment from you but then failed to complete or only partially completed the agreed-upon services;
• Overcharged you.

As such, when hiring a contractor for home repairs, it is important to thoroughly review the legal contract executed between yourself and the contractor. The services agreement or contract should specify the terms and conditions of your specific arrangement with the contractor, including:

• A thorough description of the exact work that is to be performed under the services agreement;
• A description of the amount of money that is to be paid for the work performed, including the time in which the money will be paid;
• A time frame that outlines deadlines that determine when all work is to be completed; and
• An outline of anything that could qualify as a breach of the service contract and the penalties for such breaches.

It is important to note that if a contractor violates the terms of an agreement, then you may sue them in civil court. In general, most claims brought against contractors will be breach of contract lawsuits. However, there are also other legal claims that may be filed against a contractor.

What Are Some Legal Claims That Can Be Filed Against a Contractor?

As mentioned above, the most common legal claim that is filed against a contractor in Arizona is a breach of contract claim. Examples of the most common legal claims that a homeowner may file against a contractor in Arizona include:

• Breach of Contract Claim: A breach of contract occurs when one party fails to follow through with their side of a contract.
  • Breaches frequently happen when one party has not delivered on their obligations within an appropriate amount of time, or fails to perform their contract obligations at all.
    • As mentioned above, a contractor may be found liable for breach of contract if they miss a deadline, if they do not begin the project or partially complete the project, or if they fail to utilize construction materials that were previously agreed upon in the contract.
  • There are four types of breaches that may occur under the breach of contract umbrella:
    • Minor Breach: A minor breach occurs when a party fails to perform part of the contract but does not violate the entire contract, which may result in you suing a contractor for poor workmanship;
    • Material Breach: A material breach occurs when a breach substantially impairs the contract as a whole, which completely defeats the core purpose of the agreement;
    • Fundamental Breach: A fundamental breach is a more egregious breach than a material breach; and
    • Anticipatory Breach: An anticipatory breach is a breach that occurs when one party notifies the other that they will not be fulfilling their obligations under the terms of the agreed upon contract.
• Contract Fraud Claim: Contract fraud occurs when one party knowingly makes a false claim coupled with the intent to trick or deceive the other party into signing a contract.
  • Examples of contract fraud include if the contractor told the homeowner that the completed project would look one way, but the result is different from the expectations that were set or if the contractor promised only to use specific high grade materials, but used less costly and lower quality materials after receiving payment for the original materials.
• Defective Construction Work Claim: Construction defects refer to work that is performed that reduces the value of a home, which includes:
  • Design deficiencies, such as a roof not being completed in accordance with building codes, often resulting in water intrusion or inadequate support;
  • Material deficiencies, such as utilizing inferior materials that cannot withstand the elements necessary;
  • Construction deficiencies resulting from poor workmanship, such as failing to properly install plumbing or electrical; and/or
  • Subsurface deficiencies in the home, such as a home being built on a hill or other unstable conditions.

It is important to note that Arizona Statute 32 1182 governs the construction industry in Arizona. This state sets minimum standards for contractors, architects, engineers, and other professionals involved in construction. As such, violating such minimum standards may also result in civil liability.

Can I Sue a Contractor Without a Contract?

Although most civil lawsuits against contractors are based on a breach of contract, you may still sue a contractor without a contract. One reason that you may still sue a contractor without a written contract is that you could argue that an implied or oral contract was formed.

For example, if you hire a contractor to paint your entire house, but they only paint 50% of your home, then you may be able to demonstrate through your payment and the contractor performing partial services that an oral contract was formed.

Then, you could have a court enforce your oral contract by having the contractor either partially refund you or by having them cover the costs of having the work completed by another contractor. However, it is important to note that the person who is bringing the civil lawsuit will have the burden of providing evidence of some agreement made to perform the services.

How Do I Sue for Breach of Contract?

In order to sue a contractor in Arizona for a breach of contract, you as the plaintiff (i.e., the party that is alleging they suffered harm) must prove all of the following:

• There was a legally enforceable contract. You must first demonstrate that a valid and enforceable contract was executed between you and the contractor. This means you must demonstrate that there was:
  • An offer;
  • Acceptance of the offer;
  • Consideration.
• That a breach of contract occurred. In order to establish a breach, you must demonstrate that the terms of the contract were violated, such as by the contractor failing to fulfill their contractual obligations;
• That you suffered economic damages. Finally, you must demonstrate that you suffered financial harm as a result of the breach, such as having to hire another contractor to remedy the breach, etc.

How Much Does It Cost to Sue a Contractor?

In short, it depends. The cost of suing a contractor in Arizona will vary based on several factors, including:

• The total cost of your attorney and their related attorney fees, should you pursue a civil claim in civil court;
• Whether or not your case may be resolved in small claims court, as small claims may be resolved for a filing fee of $251 in Arizona;
• Whether or not you are able to negotiate a settlement with the contractor and avoid filing a civil lawsuit.

What Is the Statute of Limitations for Contract Disputes?

In the state of Arizona, contractors are liable for their work for up to eight years from the time in which the agreed-upon project was completed. Importantly, you must file your claim against a contractor by a specified deadline if you discover a defect in the contractor’s work. These deadlines are known as a statute of limitations.

The statute of limitations for filing a claim against a contractor in Arizona is two years from the discovery of the defect. The clock for filing a civil lawsuit against a contractor begins to run on the day that the property damage occurs and the defect is discovered. A local attorney in Arizona will be able to ensure that you meet any deadlines for filing your civil lawsuit.

Do I Need an Attorney for Suing a Contractor?

If you believe that a contractor has breached their contract with you, or if you have suffered any economic harm as a result of a contractor, then it is in your best interests to consult an experienced Arizona contract lawyer.

LegalMatch can assist you in finding an experienced contract lawyer and setting up an initial consultation with them. An experienced contract attorney can inform you of your legal rights and options according to Arizona’s specific laws regarding contractors. Additionally, a contract lawyer will also be able to initiate a civil lawsuit against the contractor that caused you damages, as well as represent you in court, as needed.