New York Passes AVOID Act, Changing Construction Litigation Timeline

Strict new deadlines for impleading subcontractors and other parties could shift risk and strategy in New York construction cases.

Published on Feb. 13, 2026

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New York has passed the Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act, which fundamentally rewrites third-party practice in construction litigation. The new law imposes strict deadlines for defendants to bring in subcontractors, suppliers, and other responsible parties, dramatically compressing the window for action. Owners, developers, and contractors will now need to quickly identify all potentially responsible parties, analyze indemnification provisions, and make early determinations about impleader - or risk permanently losing those claims.

Why it matters

The AVOID Act is expected to have the biggest impact on high-exposure New York Labor Law cases, where defendants have historically relied on aggressive third-party practice to shift liability downstream. By limiting impleader timing while leaving plaintiffs' control of the case intact, the new law may increase settlement leverage for plaintiffs, push defendants toward earlier global resolution, and force more reliance on insurance litigation rather than third-party contribution claims.

The details

Under the amended CPLR § 1007, contract-based indemnity claims must generally be brought within 60 days after the defendant serves its answer, and non-contractual claims must be asserted within 60 days of "becoming aware" that another party may be responsible. Subsequent layers of third-party practice are subject to even shorter deadlines, and no impleader is permitted after the filing of a Note of Issue. These tight timelines will force companies to act quickly, identifying potentially responsible parties, analyzing contracts, and making impleader decisions immediately - rather than waiting for discovery to unfold.

  • The AVOID Act was signed into law on December 19, 2025.
  • The new rules under CPLR § 1007 take effect on April 18, 2026.

The players

New York State Legislature

The legislative body that passed the AVOID Act, fundamentally rewriting third-party practice in New York construction litigation.

Construction Owners, Developers, and Contractors

Parties involved in New York construction projects who will need to quickly adapt their risk assessment, contract enforcement, and litigation strategies to comply with the new AVOID Act deadlines.

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What’s next

Companies operating in New York should update their incident-response playbooks, re-evaluate contract management systems, train project teams to flag potential third-party exposure early, and adjust reserve strategies to account for the new AVOID Act deadlines.

The takeaway

The AVOID Act represents a significant shift in New York construction litigation, forcing owners, developers, and contractors to move much more quickly to identify responsible parties, analyze contracts, and make impleader decisions - or risk permanently losing critical claims and leverage in these high-stakes cases.