Arizona Court of Appeals Division One Holds That Statute of Limitations Is Tolled For Assigned Claim During Period In Which Claim Assignee Is a Minor If Assignment Occurs Before Limitations Period Expires Against Assignor.

Defendants moved to dismiss the assigned claim for medical expenses based on the failure to file suit within one year of the injury.  The superior court granted the motion and entered judgment on that claim pursuant to Rule 54(b), Ariz. R. Civ. P.  The Estate appealed.

The Court of Appeals reversed and remanded.  The assignment of the cause of action before the one-year statute of limitations had run under A.R.S. § 12-821 tolled the statute of limitations under A.R.S. § 12-502 until the daughter turned 18.  The court rejected Defendants’ argument that the Estate, as assignee standing in the shoes of the assignor, was bound by the same limitations period that would govern a claim brought by the mother.  Because the assignment of claim occurred before the expiration of the limitations period for the assignor (mother), it was thereafter governed by the limitations period for the assignee (daughter), and was therefore tolled until the daughter turned 18.  See A.R.S. § 44-144 (“An assignment of a chose in action shall not prejudice any set-off or other defense existing at the time of the notice of the assignment.”) (Emphasis added).

Judge Kessler wrote the opinion; Judges Irvine and Brown concurred.