New York Legislature Enacts the AVOID Act


Effective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules.

What Changes

Before its recent amendment, CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed.

The AVOID Act replaces this open-ended approach with firm time limits and greater judicial oversight. A defendant who wishes to bring a contract-based third-party claim must now serve the third-party summons and complaint within sixty (60) days after serving its answer. For non-contract claims—for example, contribution or common-law indemnity—the same sixty-day (60) period begins when the defendant first learns that the proposed third-party defendant may be liable for the plaintiff’s claim. 

Successive third-party claims are subject to similarly compressed schedules. A first-level third-party defendant that elects to implead another party has forty-five (45) days from serving its answer to do so. Any later third-party defendant has just twenty (20) days from its answer to commence its own third-party action. Extensions of more than thirty (30) days now require a court order, and impleader outside the statutory windows requires written consent from both the plaintiff and the court.

The AVOID Act also curtails consolidation of multiple cases. When a third-party plaintiff initiates a separate action instead of impleading, the statute now bars any motion to consolidate that new action with the original case.

Collectively, these changes transform CPLR 1007 from a permissive framework into one governed by tight, cascading deadlines and heightened judicial control, significantly restricting the once-generous flexibility of impleader practice in New York.

What This Means for Litigants

The practical consequences are significant. For example, defendants must investigate their potential third-party claims much earlier than usually. This includes more thorough contract review, tender analysis, assessment of insurance obligations, and identification of potentially responsible parties, which can no longer wait for discovery to develop potentially relevant and critical factual information.

Additionally, litigants can likely expect more motion practice. The new leave-of-court requirement could generate contested motions, good-cause disputes, and heightened scrutiny of litigation timelines. 

Plaintiffs may experience some potential leverage with the shorter timeline for impleader. For example, the effort to eliminate later impleader may reduce late-stage schedule disruption, providing plaintiffs with a bit more control and predictability over the timing of trial. 

For defendants seeking to implead, the costs of missing the impleader window have gone up. For example, defendants who fail to implead within the AVOID Act’s windows now may need to commence separate plenary actions to seek relief from a third-party, proactively negotiate tolling agreements earlier than anticipated, and/or more heavily rely on contractual tender and indemnification obligations to ensure any rights are not waived. It will be interesting to see how defendants adapt to missing the impleader window 

What to Do Now

Even before the amendment takes effect, counsel should consider taking a few steps to ensure (1) timely filing of third-party actions and/or (2) preservation of rights with respect to any third-party complaints. This may include building an impleader analysis into initial case intake, thought it could prove impossible in some instances to truly identify every potential third-party at such an early stage of litigation. That said, counsel should make every effort to assist clients in the identification of all potentially responsible third parties at the outset, particularly in construction, products liability, design professional, and software cases. Finally, attorneys must now be incredibly diligent and mindful of the calendar implications caused by the changes to CPLR 1007.

The changes to CPLR 1007 suggest a broader policy direction toward earlier case organization and more structured third-party practice, as well as an effort towards efficient and shortened litigation timelines. The amendment places a premium on early diligence and make late impleader more difficult to obtain. In sum, defendants would be well served by treating third-party practice as a front-end priority rather than a question to revisit as the case develops.

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