Assembly Bill A8841

2011-2012 Legislative Session

Relates to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work

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Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-A8841 (ACTIVE) - Details

See Senate Version of this Bill:
S6057
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd ยง5-322.1, Gen Ob L
Versions Introduced in 2013-2014 Legislative Session:
A528, S1216

2011-A8841 (ACTIVE) - Summary

Relates to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work.

2011-A8841 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 6057                                                  A. 8841

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 4, 2012
                               ___________

IN  SENATE  --  Introduced by Sen. DeFRANCISCO -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary

IN  ASSEMBLY -- Introduced by M. of A. CUSICK, P. RIVERA, RUSSELL, STEV-
  ENSON, CASTRO -- Multi-Sponsored by -- M. of A. SCHIMEL --  read  once
  and referred to the Committee on Judiciary

AN  ACT  to  amend the general obligations law, in relation to the unen-
  forceability of a contract clause requiring a  contractor  or  subcon-
  tractor to continue unapproved or disputed work

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 5-322.1 of the general obligations
law, as added by chapter 224 of the laws of 2009, is amended to read  as
follows:
  2.   A  covenant,  promise,  agreement  or  understanding  in,  or  in
connection with or collateral to a contract or agreement relative to the
construction, alteration, repair or maintenance of  a  building,  struc-
ture,  appurtenances  and  appliances  including  moving, demolition and
excavating connected therewith, (A) purporting to  condition  a  subcon-
tractor's  or  materialman's  right  to  file a claim and/or commence an
action on a payment bond on exhaustion of another legal  remedy  OR  (B)
WHICH  REQUIRES  A  CONTRACTOR  OR SUBCONTRACTOR TO COMMENCE OR CONTINUE
WORK NOTWITHSTANDING THAT THE WORK AND/OR THE PRICE FOR THE WORK  IS  IN
DISPUTE  OR  HAS NOT BEEN APPROVED BY THE OWNER is against public policy
and is void and unenforceable; provided that this subdivision shall  not
affect  the  validity  of  any insurance contract, workers' compensation
agreement or other agreement issued by an admitted insurer.
  S 2.  This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13599-01-1

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