Casualty

On December 19, 2025, Governor Kathy Hochul signed the Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act (L. 2025, ch. 704), amending CPLR § 1007 to impose, for the first time, strict deadlines on third-party practice in New York civil litigation. Effective April 18, 2026, the Act is intended to streamline cases and curb delay tactics caused by late or excessive impleading, while shifting greater responsibility to both defendants and plaintiffs to identify all potentially liable parties early in the case.

Under the new rules, defendants must file third-party complaints within 60 days of serving an answer when based on contractual indemnification, or within 60 days of learning of a potentially liable party under common-law theories. Second-tier third-party actions must be filed within 45 days, with subsequent tiers limited to 30 days and then 20 days. Extensions are capped at 30 days absent a court order, and no impleader is permitted after the filing of the Note of Issue; late filings will be severed or dismissed without prejudice and may not later be consolidated back into the main action. Limited exceptions apply, including certain workplace injury claims against employers (such as “grave injury” cases or when the employer’s identity was unknown), where parties have up to 120 days from the relevant triggering event.

While designed to accelerate litigation, the AVOID Act may introduce new practical challenges. Counsel—particularly in complex matters like construction cases—will need to investigate liability and pursue tenders much earlier, potentially leading to expanded discovery, additional depositions, and increased motion practice. Although rights to contribution or indemnity are preserved through separate actions, settlements with plaintiffs may waive contribution rights, complicating resolution and potentially giving plaintiffs a strategic tool to restrict third-party practice and risk transfer.