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Assembly Bill A528

2013-2014 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

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2013-A528 (ACTIVE) - Details

See Senate Version of this Bill:
S1216
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd ยง5-322.1, Gen Ob L
Versions Introduced in 2011-2012 Legislative Session:
A8841, S6057

2013-A528 (ACTIVE) - Summary

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

2013-A528 (ACTIVE) - Bill Text download pdf 

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

    S. 1216                                                   A. 528

                       2013-2014 Regular Sessions

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

                               (PREFILED)

                             January 9, 2013
                               ___________

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, JAFFEE, ABINANTI, HOOPER,
  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.
                                                           LBD05000-01-3

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