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Assembly Bill A10634

2025-2026 Legislative Session

Relates to voiding certain agreements conditioning the right of a subcontractor's or material supplier's right to commence a lawsuit or arbitration proceeding for breach of contract or quantum meruit

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Current Bill Status - In Assembly Committee

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2025-A10634 (ACTIVE) - Details

See Senate Version of this Bill:
S9428
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd §5-322.1, Gen Ob L

2025-A10634 (ACTIVE) - Summary

Voids agreements conditioning the right of a subcontractor's or material supplier's right to commence a lawsuit or arbitration proceeding for breach of contract or quantum meruit.

2025-A10634 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10634
 
                           I N  A S S E M B L Y
 
                              March 13, 2026
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT  to  amend  the  general obligations law, in relation to voiding
   certain agreements conditioning the  right  of  a  subcontractor's  or
   material  supplier's  right  to  commence  a  lawsuit  or  arbitration
   proceeding for breach of contract or quantum meruit

   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,  purporting to condition a subcontrac-
 tor's or [materialman's] MATERIAL SUPPLIER'S right to (A) file a  claim,
 (B)  COMMENCE A LAWSUIT OR ARBITRATION PROCEEDING FOR BREACH OF CONTRACT
 OR QUANTUM MERUIT, and/or (C) commence an action on a  payment  bond  on
 exhaustion  of another legal remedy 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.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 contracts  entered  into,  renewed, modified or amended on or after such
 effective date.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15149-01-6

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