New York Tightens the Clock: What the AVOID Act Means for Your Claim

In December 2025, Governor Kathy Hochul signed into law the AVOID Act—short for Avoiding Vexatious Overuse of Impleading to Delay. The law amends CPLR § 1007 and imposes strict statutory deadlines on when defendants may bring third-party actions. The AVOID Act takes effect in April 2026 and will apply to cases pending on or filed after that date.

What the AVOID Act Changes

Previously, New York courts had broad discretion to allow third-party claims (impleader) at various stages of litigation. The AVOID Act replaces that flexibility with firm deadlines:

  • Contractual third-party claims (e.g., contractual indemnification or failure to procure insurance) must be commenced within 60 days after service of the defendant’s answer.
  • Non-contractual third-party claims (e.g., contribution or common-law indemnification) must be commenced within 60 days after the defendant becomes aware of the potential third-party’s liability.
  • Additional layers of third-party actions face even shorter deadlines, ranging from 45 days to as little as 20 days, depending on the procedural posture.
  • Once a note of issue is filed, no new third-party actions may be commenced. Late claims may be severed or dismissed and forced to proceed as separate actions.

Limited extensions are available, including a single 30-day extension by stipulation prior to the filing of a note of issue, but court-ordered extensions will be narrowly granted.

Why This Matters

The AVOID Act significantly front-loads litigation strategy. Defendants must now identify and assert third-party claims much earlier—often before discovery has meaningfully progressed.

This change may:

  • Require earlier investigation into contracts, indemnity provisions, and insurance coverage;
  • Encourage “protective” third-party filings to preserve rights;
  • Increase the risk of missed deadlines and loss of indemnity or contribution claims;
  • Lead to parallel or fragmented litigation if third-party claims are severed.

For insurers, risk managers, and businesses involved in construction, premises liability, transportation, or complex commercial matters, the compressed timeline presents both procedural and financial risks.

Key Considerations Going Forward

To prepare for the AVOID Act, parties should consider:

  • Conducting early liability and risk assessments immediately upon receipt of a complaint;
  • Reviewing contracts and insurance documentation at the outset of a case;
  • Updating internal claims-handling and litigation workflows to meet the new deadlines;
  • Coordinating early with counsel to preserve third-party rights;
  • Seeking extensions proactively where permitted.

Conclusion

The AVOID Act represents a major procedural shift in New York litigation. While intended to reduce delay, it places increased pressure on defendants to act quickly and decisively—often with limited information. Advance planning and early involvement of counsel will be critical to navigating these changes successfully.

If you have questions about how the AVOID Act may affect your current or future matters, or if you would like assistance reviewing your litigation or claims-handling procedures in light of this new law, please contact Joshua A. Filzer or Joseph V. Leone.

If you have any questions about how the AVOID Act may affect your current or future matters, you can contact Joshua Filzer at jfilzer@hoaglandlongo.com, Joseph Leone at jleone@hoaglandlongo.com, or call 732-545-4717.

SUBSCRIBE