Bill Text: NY S01216 | 2013-2014 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2014-06-18 - referred to judiciary [S01216 Detail]

Download: New_York-2013-S01216-Introduced.html

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                           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:
    1    Section 1. Subdivision 2 of section 5-322.1 of the general obligations
    2  law,  as added by chapter 224 of the laws of 2009, is amended to read as
    3  follows:
    4    2.  A  covenant,  promise,  agreement  or  understanding  in,  or   in
    5  connection with or collateral to a contract or agreement relative to the
    6  construction,  alteration,  repair  or maintenance of a building, struc-
    7  ture, appurtenances and  appliances  including  moving,  demolition  and
    8  excavating  connected  therewith,  (A) purporting to condition a subcon-
    9  tractor's or materialman's right to file  a  claim  and/or  commence  an
   10  action  on  a  payment bond on exhaustion of another legal remedy OR (B)
   11  WHICH REQUIRES A CONTRACTOR OR SUBCONTRACTOR  TO  COMMENCE  OR  CONTINUE
   12  WORK  NOTWITHSTANDING  THAT THE WORK AND/OR THE PRICE FOR THE WORK IS IN
   13  DISPUTE OR HAS NOT BEEN APPROVED BY THE OWNER is against  public  policy
   14  and  is void and unenforceable; provided that this subdivision shall not
   15  affect the validity of any  insurance  contract,  workers'  compensation
   16  agreement or other agreement issued by an admitted insurer.
   17    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