By Michelle Leighton and Juanita Gadsden
New York’s Avoiding Vexatious Overuse of Impleading to Delay Act (AVOID Act), effective for cases filed on or after April 18, 2026, represents one of the most significant procedural shifts in New York construction litigation in recent years. The legislation fundamentally changes how and when parties may be brought into a lawsuit, creating accelerated timelines that demand earlier investigation, faster decision-making, and more strategic coordination among project stakeholders.
For construction businesses, the impact extends well beyond litigation strategy. The AVOID Act directly affects incident response protocols, contract administration, insurance tenders, and risk transfer practices. In today’s environment, organizations that move quickly and collaboratively following a loss will be best positioned to preserve their legal rights and control claim exposure.
The AVOID Act amends New York Civil Practice Law and Rules (CPLR § 1007) by replacing the historically flexible impleader process with strict statutory deadlines for bringing additional parties into litigation.
Under the new framework, third-party actions generally must be filed within 90 days after service of an answer, with similarly strict timelines applying at every subsequent tier of litigation. The intent of the legislation is to reduce delays caused by late identification of responsible parties and to streamline litigation proceedings.
The practical effect is clear: construction claims will now require much earlier analysis of liability, contractual obligations, indemnification rights, and downstream insurance coverage.
The compressed litigation timeline significantly raises the stakes for early claim management. Delays in identifying responsible parties, reviewing contracts, or tendering claims may result in forfeited indemnity and contribution rights.
Construction organizations should expect:
While the Act may increase activity in the early stages of litigation, it could also shorten overall case duration and improve opportunities for earlier resolution.
Following any significant incident or lawsuit, contractors and subcontractors should immediately identify all potentially involved parties and preserve critical project documentation. Early investigation efforts should include:
The AVOID Act places increased importance on rapid contract analysis. Brokers, insurers, defense counsel, risk managers, and project leadership should collaborate early to evaluate:
Waiting until litigation develops may no longer be sufficient under the new statutory framework.
The strongest defense against accelerated litigation timelines begins before a project starts. Construction businesses should review and update contract templates to ensure:
Well-drafted contracts not only strengthen risk transfer but also improve operational readiness when claims arise.
Early coordination among all stakeholders will be critical under the AVOID Act. Timely communication between project teams, brokers, insurers, claims professionals, and defense counsel can help:
Failure to comply with the AVOID Act’s deadlines may significantly impair a party’s ability to pursue indemnification or contribution claims against other responsible entities. Missed deadlines could increase uninsured exposure, weaken settlement leverage, and create unnecessary litigation costs.
In this new environment, proactive claims management is no longer simply best practice. It is essential risk protection.
At Conner Strong & Buckelew, we closely monitor evolving litigation and regulatory developments that impact our clients’ operations and risk profiles. The AVOID Act is a prime example of how procedural changes can materially affect construction claim outcomes, contractual risk transfer, and insurance recovery strategies.
Our team works proactively with construction clients to:
By combining claims advocacy, construction risk expertise, and strategic coordination, we help clients stay ahead of emerging risks and protect their interests throughout the claim lifecycle.
For a more comprehensive legal analysis of the AVOID Act, please review the following articles from Lewis Brisbois:
Michelle Leighton
Partner, National Claim Advocacy & Consulting Leader
Juanita Gadsden
Vice President, Senior Claim Consultant
