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A.R.S. § 14-3811

Counterclaims in Estate Probate

Verified April 4, 202657th Legislature, 1st Regular Session

When a creditor files a claim, the estate may have its own claim against that creditor. The personal representative can deduct counterclaims from what the creditor is owed. If the counterclaim exceeds the original claim, the court can enter a judgment in favor of the estate.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

The Estate Can Push Back

Creditor claims are not a one-way street. Sometimes the person who passed away was owed money by the very creditor now filing a claim. For example, a contractor may not have finished a job. Or a business partner may have owed a debt.

In allowing a claim the personal representative may deduct any counterclaim which the estate has against the claimant. In determining a claim against an estate a court shall reduce the amount allowed by the amount of any counterclaims and, if the counterclaims exceed the claim, render a judgment against the claimant in the amount of the excess.

A.R.S. § 14-3811

The personal representative reviews the claim and deducts any valid counterclaim. If the court is involved, it does the same calculation. When the counterclaim is larger, the court enters a judgment against the creditor.

Broad Flexibility in Counterclaims

The law takes a broad approach to what qualifies as a counterclaim. It does not need to arise from the same transaction as the original claim.

For example, a creditor may file a claim based on an unpaid invoice. That creditor could face a counterclaim from a separate deal. The statute also allows counterclaims that seek relief beyond the original claim amount.

This gives personal representatives meaningful leverage. As a result, creditors who also owed the estate may receive less. They may even owe money back to the estate.

In allowing a claim the personal representative may deduct any counterclaim which the estate has against the claimant. In determining a claim against an estate a court shall reduce the amount allowed by the amount of any counterclaims and, if the counterclaims exceed the claim, render a judgment against the claimant in the amount of the excess. A counterclaim, liquidated or unliquidated, may arise from a transaction other than that upon which the claim is based. A counterclaim may give rise to relief exceeding in amount or different in kind from that sought in the claim.

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.

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