513 P.3d 277
Ariz.2022Background:
- In October 2018, a 12‑year‑old (I.M.) was killed in Peoria; his mother, Kizzen James, timely served a notice of claim on the City on March 26, 2019.
- The notice complied with A.R.S. § 12‑821.01(A), including a specific settlement demand of $10,071,016.72 and an attached counsel letter stating the offer was "valid for thirty (30) days."
- The City did not respond within 60 days; James filed a wrongful‑death lawsuit more than six months after serving the notice.
- The trial court (relying on Drew) dismissed James’ complaint as barred because her notice allegedly shortened the statutory 60‑day response period; the court of appeals affirmed.
- The Arizona Supreme Court granted review to decide whether a notice of claim is invalid if it conditions a settlement offer to expire before the 60‑day period in § 12‑821.01(E).
- The Court held that an otherwise valid notice of claim is not invalidated by a claimant’s unilateral attempt to shorten the public entity’s statutorily granted 60‑day response period; the 30‑day deadline was a legal nullity, trial judgment reversed, and the court of appeals decision vacated.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a notice of claim is invalid if it states a settlement offer expires in less than 60 days under § 12‑821.01 | James: Notice complied with § 12‑821.01(A); her 30‑day offer cannot negate a valid notice or shorten the entity’s statutory response period | City: § 12‑821.01(E) gives the public entity 60 days; claimant cannot unilaterally shorten that period—short offer invalidates the notice (per Drew) | The 30‑day condition was a legal nullity; an otherwise compliant notice remains valid and the public entity has the 60‑day statutory response window (reversed) |
| Whether a claimant may file suit before the 60‑day period expires | James suggested suit may be filed before 60 days in some circumstances | City argued procedural timing should be respected | Not decided; Court expressly left the question for another day |
Key Cases Cited
- Drew v. Prescott Unified Sch. Dist., 233 Ariz. 522 (App. 2013) (court of appeals decision holding a short acceptance window could invalidate a notice of claim; overruled)
- Falcon ex rel. Sandoval v. Maricopa County, 213 Ariz. 525 (2006) (discussing the practical effect of the 60‑day statutory response period)
- Backus v. State, 220 Ariz. 101 (2009) (legislative purpose of claims statutes—to hold public entities responsible and facilitate settlement)
- Deer Valley Unified Sch. Dist. No. 97 v. Houser, 214 Ariz. 293 (2007) (§ 12‑821.01 requirements promote investigation, settlement, and budgeting)
- BSI Holdings, LLC v. Ariz. Dep’t of Transp., 244 Ariz. 17 (2018) (standard of review: statutory construction and summary judgment reviewed de novo)
