Effective April 20, 2026, New York’s AVOID Act will fundamentally change how third-party claims are handled in civil litigation. The law requires defendants to file third-party complaints within 60 days of serving their answer—a dramatic departure from current practice, which typically allows impleader after key depositions are completed. This compressed timeline creates serious problems for Labor Law, premises liability, and construction cases, where the identity of responsible contractors or subcontractors is often unknown when the initial answer is filed. The law also imposes shorter deadlines for subsequent third-party defendants (45, 30, and 20 days respectively), limits extensions to 30 days, and prohibits any third-party complaints after a note of issue is filed. 

What This Means for Claims Handing 

  • Timing is everything. The law takes effect April 20, 2026 and applies to any case pending on that date or filed after. The 60-day clock runs from either the 60th day after service of your answer or April 20, 2026—whichever is later. Don’t rush to file your answer. File it on the last possible day to maximize time for investigation. Missing the deadline doesn’t extinguish indemnification rights, but it may force you into a separate suit. 
  • Lower caseloads per attorney. The accelerated timeline means more focused attention on each file. We’ll likely need reduced case counts to manage the increased front-end workload. 
  • More aggressive early investigation. Field investigations, document requests, and subpoenas for workers’ comp and building records need to start immediately upon notice of claim—often before complaints are even filed. 
  • Faster tender and third-party identification. Carriers will have less time to evaluate coverage and make decisions. We’re talking weeks, not months, to identify potential third parties. 
  • Increased motion practice early in litigation. Expect more motion activity as parties seek extensions or challenge impleaders filed under these compressed timelines. 
  • More lawsuits involving subcontractors. To preserve rights, insureds may need to file protective third-party complaints against subcontractors who may ultimately not be responsible. This means more parties and added complexity. 
  • Higher early case budgets. Front-loading investigation and discovery increases costs in the first 90 days of a case. 
  • Risk of “pay and chase” scenarios. With timing gaps between resolution of the main action and determination of third-party liability, defendants may be forced to settle first and pursue contribution later. 
  • Potential for fragmented litigation. Missing the impleader window could force defendants into separate actions, even when all parties are connected to the same incident. 

Let’s Develop Your Strategy Together 

We’re already updating our standard operating procedures to accelerate third-party practice across all New York matters. Between now and the April 20, 2026 effective date, we have a window to work with you on integrating these changes into your claims-handling protocols. 

We’re thinking outside the box about how this statute will affect your operations—from first notice procedures to budget forecasting to adjuster workflows. Let’s schedule time early in the new year to develop a plan of action for your organization before this law takes effect. 

To discuss strategies for your claims and how we’re adjusting our practice to meet these new requirements, please reach out to: 

 

David S. Henry 
Chair, General Liability and Transportation Division
Kelley Kronenberg- Fort Lauderdale, FL. – New York City, NY.
(954) 370-9970
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Jessica A. Clark
Partner/Business Unit Leader, New York Labor Law
Kelley Kronenberg- New York City, NY.
(845) 306-7867
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Scott D. Kagan
Partner, New York Labor Law
Kelley Kronenberg- New York City, NY.
(845) 306-7867
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Bio

 

 

 

Dan P. Mevorach
Partner, New York Labor Law
Kelley Kronenberg- New York City, NY.
(845) 306-7867
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Bio