How to collect unpaid invoices in Arizona: lien rights, consent law, and Justice Court

Arizona's wiretapping statute (A.R.S. §13-3005) prohibits interception of wire or electronic communications without the consent of all parties. Unlike federal law (which requires only one party's consent) and most state laws, Arizona's statute requires everyone on the call to consent to recording. Violations are a Class 5 felony. For collection calls to Arizona customers, the safest practice is an explicit verbal disclosure at the opening of the call -- 'This call may be recorded. Do you consent?' -- and pausing for acknowledgment. Any AI-assisted call recording to an Arizona customer should be engineered to obtain this consent.

Arizona mechanic's lien law (A.R.S. §33-981 et seq.) requires any person who furnishes labor, professional services, materials, machinery, fixtures, or tools for the improvement of real property to serve a preliminary 20-day notice on the property owner, general contractor, and construction lender within 20 days of first furnishing (A.R.S. §33-992.01). Work furnished more than 20 days before the notice is served is excluded from lien coverage. File the 20-day notice before your crew mobilizes, or within 2 working days of first furnishing at the absolute latest.

The lien itself must be recorded in the county recorder's office within 120 days after the last date on which the claimant performed labor or furnished materials (A.R.S. §33-993). For a subcontractor who finished work on June 15, the lien must be recorded by October 13. An action to foreclose the lien must be brought within 6 months of the last day of furnishing. Arizona lien law is relatively straightforward once the preliminary notice is filed on time -- the 120-day window gives ample time for first-party follow-up before filing becomes necessary.

Arizona Justice Court small claims (A.R.S. §22-503) handles claims up to $3,500. This is the lowest small claims limit in the country. For any invoice over $3,500, the case must be filed in Justice Court as a regular civil action (limit up to $10,000) or in Superior Court for amounts above that. Filing fees for small claims are $50 to $72. Hearings are typically scheduled within 30 to 60 days. The low limit means small claims is only appropriate for minor residential service invoices; most trade contractor disputes will end up in the regular civil docket.

The Arizona statute of limitations on written contracts is 6 years (A.R.S. §12-548). For oral contracts and accounts stated, the limit is 3 years (A.R.S. §12-543). The clock begins when the cause of action accrues -- when payment was due and unpaid. Arizona's 6-year window is among the longer statutes in the US, but waiting past 2 to 3 years to pursue an invoice creates practical difficulties in producing evidence and witnesses.