Avoiding Vexatious Overuse of Impleading Delay (“AVOID Act”)

11 minutes ago
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Monday, March 9, 2026

Deadlines on Third-Party Practice

Effective April 18, 2026, the AVOID Act will drastically impact defendants, insurers, and in-house counsel. The AVOID Act imposes strict and accelerated deadlines for commencing third-party actions in New York State. As defense counsel, the challenges associated with the implementation of the AVOID Act will force important litigation decisions. The AVOID Act will fundamentally change how third-party practice operates by forcing parties to move forward with third-party actions. Now, counsel will need to make risk transfer decisions earlier in the case, without the benefit of completing discovery.

Key Provisions and Deadlines

Initial Deadline: Defendants must file third-party complaints within 60 days of serving their answer. For noncontractual claims, such as common law indemnification or contribution, the 60-day clock begins when the defendant becomes “aware” that the proposed third-party defendant may be liable for all or part of the plaintiff's claim.
Successive Actions: Deadlines decrease for later parties: 45 days for the first; 30 days for the second; and 20 days for subsequent parties.
Service Time: The time to serve the summons and complaint is reduced to 20 days after filing.
Post-Note of Issue: No third-party actions are allowed after the Note of Issue is filed.
Severance: Late filings are subject to mandatory for severance or dismissal and cannot be re-consolidated.
Extensions: A one-time 30-day extension is allowed by stipulation; longer extensions require court approval and plaintiff consent.
Exception: A 120-day deadline applies to claims invoking “grave injuries” to a plaintiff’s employer.

With a little over a month before the AVOID Act becomes effective, we recommend that defendants, insurers, and in-house counsel review current and pending cases to identify and implead potential third parties immediately. Third-party actions commenced before April 18th are not subject to the new deadlines.

Some other considerations to think about with the looming effective date are (1) how new cases should be evaluated, stressing the importance of assessing potential third-parties, especially in labor law actions; (2) ensuring clients update incident response and reporting protocols, specifically with respect to contractors – keeping pertinent information such as contracts, indemnity and insurance provisions quickly available for review following a loss; and (3) being over-inclusive with third-party actions to ensure that the right is not lost due to missing the deadlines.

Should you have any questions or concerns about the AVOID Act and how it may impact your case, please do not hesitate to contact me.