On December 19, 2025, New York State Governor Kathy Hochul signed the “Avoiding Vexatious Overuse of Impleading to Delay (“Avoid”) Act” into law, which will have a significant impact on third-party practice in New York, including requiring defendants (and their insurance carriers) to conduct a quick risk transfer assessment in New York State proceedings. The law becomes effective on April 18, 2026, and is applicable to cases pending on or after that date, but not to third-party complaints that were filed and served before the effective date.
The AVOID Act amends Civil Practice and Rules (“CPLR”) § 1007, which is the primary statute applicable to third-party practice. The AVOID Act creates clear time limits for defendants to “implead” (or bring) third-party defendants into a case. Before this amendment, CPLR § 1007 was silent regarding the timing for impleading parties.
Third-Party Actions by a defendant
Contractual third-party claims
If a defendant’s claim against another person or entity arises from a contractual relationship, the defendant must proceed with filling and serving a third-party summons and complaint against that person or entity who is or may be liable for all or part of the plaintiff’s claim within sixty days of serving an answer.
All other third-party claims
All other claims by a defendant, such as those based on contribution or common law, must be commenced within sixty days of becoming aware that the person or entity is or may be liable to the defendant for all or part of a plaintiff’s claim.
After the first third-party action
After the first third-party action, the AVOID Act creates further time limitations on third-party practice as follows:
- A third-party defendant who files its own third-party summons and complaint (becoming the second third-party plaintiff) must commence its third-party action within forty-five days after serving an answer
- A second third-party defendant who files its own third-party summons and complaint (becoming the third third-party plaintiff) must commence its third-party action within thirty days after serving an answer
- Any subsequent third-party defendant must commence its third-party action within twenty days after serving an answer
The time limitations for third-party defendants to bring their own third-party action does not distinguish between contractual or other claims – all claims, no matter how they arise, must be brought within the prescribed time periods.
The parties can only stipulate to extend the statute’s time limitations by thirty days without court order.
Further, after twelve months have passed since a defendant or third-party defendant filed an answer, that defendant or third-party defendant can only implead another person or entity with the written consent of both the plaintiff and court.
Exceptions to the AVOID Act
The AVOID Act does not apply to a (1) defendant or third-party defendant seeking contribution or indemnification for a grave injury as defined in section eleven of the workers’ compensation law, or (2) if the identity of such employer has not been known or otherwise identified to the defendant or third-party defendant until the time limitations ended. If these situations apply, the defendant or third-party defendant shall commence the third-party action within one hundred twenty days after the later of either event. If the defendant or third-party defendant does not follow these time limitations, the action can only proceed with the written consent of both the plaintiff and the court.
Takeaways
The Bill’s purpose is to ensure that defendants implead third-party defendants at the beginning of a case so that depositions do not need to be taken multiple times and document discovery proceeds in a unified process. L 2025, ch 704; 2025 N.Y. Senate Bill S8071A; 2025 N.Y. Assembly Bill A08728. The bill also seeks to prevent tactical late impleading by defendants to delay a resolution of the action. Id.
However, the AVOID Act is anticipated to create an influx of tenders between parties (and their insurance carriers) and third-party practice at the start of litigation. This will likely lead to multiple defendants being added to a case at the outset and create significant additional discovery for the parties. If any of the strict time limitations are not complied with, the AVOID Act does not appear to prevent a defendant or third-party defendant from commencing a separate action against those who may be liable for the plaintiff’s claim, in whole or in part, but that action will have to proceed separately.
The AVOID Act will have wide implications on case strategy for defense counsel and how insurers will handle their claims and assess risks.
