My boyfriend and I had a verbal agreement with our current room mate that we would finish the lease with her. Neither of us are on the lease. After I started seeing a counselor, it was determined that a large portion of my anxiety came from our living arrangement. It was an unhealthy situation for me. Explaining this to her, we gave her a thirty day notice detailing our intent to leave. She is now threatening to take us to small claims court. I'm just wondering if she has a case. It was my understanding that since we aren't on the lease and nothing was in writing, it was a month-to-month lease. We live in Arizona. Thank you in advance for any information you're able to give!

Here is the pertinent statute of frauds in Arizona:

"44-101. Statute of frauds

No action shall be brought in any court in the following cases unless the promise or agreement upon which the action is brought, or some memorandum thereof, is in writing and signed by the party to be charged, or by some person by him thereunto lawfully authorized:

...
6. Upon an agreement for leasing for a longer period than one year, or for the sale of real property or an interest therein. Such agreement, if made by an agent of the party sought to be charged, is invalid unless the authority of the agent is in writing, subscribed by the party sought to be charged."

At the time you made the agreement, was the remaining portion of the lease longer than one year? If so, it would not be enforceable.