Specialty Companies Group, LLC v. Meritage Homes of Arizona, Inc.
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The Supreme Court held that Specialty Companies Group, LLC's claims under an alter ego theory against Meritage Homes of Arizona were time-barred under Ariz. Rev. Stat. 12-548(A)(1)'s six-year limitation period for claims founded on or evidenced by a written contract.
Maricopa Lakes, LLC hired G&K South Forty Development to serve as project manager on a real estate development project. G&K hired Specialty to assist with the project. Specialty later sued G&K to collect unpaid invoices. G&K filed a third-party complaint against Maricopa Lakes, was awarded a default judgment, and assigned to Specialty its claims against Maricopa Lakes. Specialty subsequently sued Meritage, which formed Maricopa Lakes, under an alter ego theory. The trial court granted summary judgment to Meritage, ruling that Specialty's claims were time-barred. The court of appeals reversed, concluding that the alter ego claim was an action on a judgment governed by a five-year statute of limitations that began to run when the judgment was final. The Supreme Court reversed, holding (1) the statute of limitations for alter ego actions is determined by reference to the cause of action from which the alter ego claim derives; and (2) Specialty was bound by the six-year statute of limitations for breach of contract.
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