Ariz. Rev. Stat. § 22-201 – Jurisdiction of civil actions

A. Justices of the peace have jurisdiction only as affirmatively conferred on them by law.
B. Justices of the peace have exclusive original jurisdiction of all civil actions when the amount involved, exclusive of interest, costs and awarded attorney fees when authorized by law, is ten thousand dollars or less.
C. Justices of the peace have jurisdiction concurrent with the superior court in cases of forcible entry and detainer when the amount involved, exclusive of interest, costs and awarded attorney fees when authorized by law, is ten thousand dollars or less.
D. Justices of the peace have jurisdiction to try the right to possession of real property when title or ownership is not a subject of inquiry in the action. If in any such action the title or ownership of real property becomes an issue, the justice shall so certify in the court record, at once stop further proceedings in the action and forward all papers, together with a certified copy of the court record in the action, to the superior court, where the action shall be docketed and determined as though originally brought in the superior court.
E. In a county with a population of more than two million persons, the justice of the peace of each justice precinct shall have original jurisdiction to hear the following actions that occur in the respective precinct in which the justice of the peace is elected:
1. 1. Civil actions pursuant to subsections B and C of this section.
2. 2. Small claims pursuant to chapter 5 of this title.
3. 3. Civil traffic offenses unless a civil traffic offense is filed in a municipal court by a municipal officer or agent or by an officer employed by a law enforcement agency under contract to that municipality to provide law enforcement services.
4. 4. Special detainers and forcible detainers pursuant to title 33, chapters 11 and 19 and forcible detainers pursuant to title 33, chapter 3 if the amount of rent requested is ten thousand dollars or less.
F. In actions between landlord and tenant for possession of leased premises, the title to the property leased shall not be raised nor made an issue.
G. If in any action before a justice of the peace a party files a verified pleading that states as a counterclaim a claim in which the amount involved, exclusive of interest and costs, is more than ten thousand dollars, the justice of the peace shall certify this in the court record, at once stop further proceedings in the action and forward all papers, together with a certified copy of the court record in the action, to the superior court, where the action shall be docketed and determined as though originally brought in the superior court. The party shall pay to the clerk of the superior court the same fees required to be paid by a defendant, and no other party in the action before the justice of the peace shall be required to pay any sum. If the party is finally adjudged to be entitled to recover on the counterclaim, exclusive of interest and costs, ten thousand dollars or less, the superior court may deny costs to the party and, in addition, may impose costs, including reasonable attorney fees, on the party. The superior court shall have original jurisdiction of the action, but at any time in furtherance of convenience or to avoid prejudice, or if it appears that the amount involved in the counterclaim, exclusive of interest and costs, is ten thousand dollars or less, it may remand the action, or any claim or counterclaim of which the justice court has jurisdiction, to the justice court and may order costs.
H. The justice of the peace may require arbitration or other dispute resolution methods that are approved by the supreme court in all civil actions except eviction actions.