Articles Posted in Government Contracts

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The Supreme Court held that governmental entities’ contract-based actions, including claims for indemnification, that fall within Ariz. Rev. Stat. 12-552(A) are subject to the eight-year statute of repose, notwithstanding Ariz. Rev. Stat. 12-510, which provides that claims by governmental entities are generally not barred by statutes of limitations, or the common law doctrine known as “nullum tempos occurit regi” (time does not run against the king). Carlos Tarazon sued the City of Phoenix after he developed mesothelioma while working on projects for the City. The City filed a third-party complaint against eight-two developers and eight contractors, seeking indemnification. The superior court granted the motions to dismiss filed by the Developers and Contractors, ruling that section 12-552(A) applied to bar the City’s claims. The Supreme Court affirmed in part and reversed in part, holding (1) the statute of repose applied for the Contractors having the requisite contractual relationship with the City; but (2) the statute of repose did not apply for the Developers whose only relationship with the City was as permittees. View "City of Phoenix v. Glenayre Electronics, Inc." on Justia Law