A.R.S. § 44-616: Liability

A. An assignor is not personally liable for an act or omission by the assignee.

B. An assignee is not personally liable for an act or omission by the assignor.

C. A representative designated by an assignor under section 44-607, subsection B, paragraph 4 is exculpated to the same extent as a person acting on behalf of the assignor under other law had there been no assignment, except for an act or omission resulting from the representative's gross negligence or wilful misconduct.

D. A term of an assignment agreement relieving the assignee of liability is unenforceable to the extent the agreement relieves the assignee of liability for an act or omission committed in bad faith or with reckless indifference to the purposes of the assignment or the interests of the creditors of the assignment estate.

E. Except as provided in subsection F of this section, an assignee is personally liable for breach of a fiduciary duty under section 44-608, subsection A. If the assignee is liable, both of the following apply:

1. The assignee is personally liable to a creditor for an individualized harm to the creditor if the harm is not shared by all creditors or a class of creditors.

2. The assignee is personally liable to the assignment estate for a harm shared by all creditors or a class of creditors.

F. An assignee is not liable if, in the performance of the assignee's duties and exercise of the assignee's powers, the assignee relies in good faith on any of the following:

1. A record of the assignor.

2. Information, an opinion, a report or a statement presented to the assignee by the assignor's officer or employee, a committee of the assignor's board of directors, an independent director or manager of the assignor or another representative of the assignor.

3. Information, an opinion, a report or a statement presented to the assignee by another person that has been selected with reasonable care by or on behalf of the assignee as to a matter the assignee reasonably believes is within the other person's professional or expert competence.