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    A.R.S. § 12-544

    Arizona's Four-Year Deadline for Partner Accountings and Penal Bond Actions

    Verified May 17, 2026 • 57th Legislature, 1st Regular Session

    Arizona gives four years to bring an action on the penal clause of a bond to convey real property, one partner against a copartner for a settlement of accounts, and certain breach-of-official-duty claims. The four-year period applies to specific commercial and fiduciary disputes.

    Title 12, LIMITATIONS OF ACTIONS

    azleg.gov

    What This Statute Says

    This section lists a small set of specialized actions that fall under a four-year deadline: actions on the penal clause of a bond to convey real property, one partner against a copartner for settlement of accounts, and similar claims tied to particular commercial relationships.

    There shall be commenced and prosecuted within four years after the cause of action accrues, and not afterward, the following actions:

    A.R.S. § 12-544

    When This Statute Comes Into Play

    Scenarios that bring this section into play:

    • A surviving partner asserts an accounting claim against the deceased partner's estate.
    • An estate seeks to enforce a penal bond that was supposed to secure a real property conveyance.
    • A beneficiary pursues a breach of official duty claim against a former trustee or other fiduciary covered by this section.

    What This Means for Arizona Families

    When a family business or partnership is part of an estate, this section often controls the timeline for closing out accounts between partners. A surviving partner who waits more than four years to demand an accounting may find the claim too late.

    If you serve as a personal representative for a partner who died with an unsettled partnership account, identify the surviving partner and the books of account quickly. Our FAQ on probate attorney fees and retainers touches on when to engage counsel for complex matters. The four-year deadline does not wait for the family to grieve. An Arizona probate attorney working with a business litigator can preserve the accounting right while the estate organizes the rest of administration. Pairing the partnership claim with a careful review of any buy-sell agreement often produces the cleanest path to closing the partnership and distributing the value to the family.

    There shall be commenced and prosecuted within four years after the cause of action accrues, and not afterward, the following actions: 1. For the penalty or for damages on the penal clause of a bond to convey real property. 2. By one partner against his copartner for a settlement of the partnership account, or upon mutual and current accounts concerning the trade of merchandise between merchant and merchant, their factors or agents, and the cause of action shall be considered as having accrued upon a cessation of the dealings in which they were interested together. 3. Upon a judgment or decree of a court rendered without the state, or upon an instrument in writing executed without the state. This paragraph does not apply to a judgment for support, as defined in section 25-500, and to associated costs and attorney fees. 4. An action arising under the provisions of title 47, chapter 2, for breach of any contract of sale, which action shall be governed by section 47-2725, notwithstanding any other provision of this section or of section 12-543 or 12-548.
    View on azleg.gov

    This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

    Related Questions

    How do guardianship and conservatorship proceedings work in Arizona?

    Both require filing with the Arizona Superior Court, medical evidence of incapacity, and a judge's approval at a court hearing. The process takes months and costs thousands. Powers of attorney accomplish the same goals without court involvement.

    Can a personal representative be removed if they are not doing their job in Arizona?

    Yes. Under A.R.S. 14-3611, any interested person can petition the court to remove a personal representative for cause. Grounds include when it is shown that the personal representative has mismanaged the estate, failed to perform duties, disregarded orders of the court, or become incapable of discharging the duties of the role.

    What happens if I become incapacitated without a power of attorney in Arizona?

    Without a power of attorney in Arizona, your family must petition for a conservatorship. A judge decides who manages your money, and the process costs thousands in legal fees with ongoing court oversight.

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