New York's AVOID Act Imposes Strict Deadlines on Third-Party Practice

Highlights

• The Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act imposes firm, accelerated deadlines for commencing third-party actions in New York state, requiring defendants to identify and implead potentially responsible parties at the outset of litigation.
• The AVOID Act fundamentally shifts the timing of risk-transfer decisions to the earliest stages of litigation – defendants can no longer wait for discovery to unfold before identifying potential third-party defendants.
• Defendants, insurers and in-house counsel should review pending matters, update internal protocols and accelerate early case assessments before the April 18, 2026, effective date.

New York Gov. Kathy Hochul signed the Avoiding Vexatious Overuse of Impleading to Delay (AVOID) Act into law on December 19, 2025, fundamentally changing how third-party practice operates in New York state. The law takes effect on April 18, 2026, and will apply to all cases pending on or after