New York S 9428: 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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S09428 Summary:

BILL NOS09428 

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SAME ASSAME AS A10634

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SPONSORRYAN C

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COSPNSR

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MLTSPNSR

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Amd §5-322.1, Gen Ob L

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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.

Go to top S09428 Actions:

BILL NOS09428 

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03/11/2026REFERRED TO JUDICIARY

05/19/20261ST REPORT CAL.1184

05/20/20262ND REPORT CAL.

05/21/2026ADVANCED TO THIRD READING 

06/05/2026COMMITTED TO RULES

Go to topS09428 Committee&nbspVotes:

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There are no Assembly votes for this bill in this legislative session.

Go to topS09428 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9428

 IN SENATE

 March 11, 2026
 ___________

 Introduced by Sen. C. RYAN -- read twice and ordered printed, and when
 printed to be committed 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:

 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, purporting to condition a subcontrac-
 9 tor's or [materialman's] material supplier's right to (a) file a claim,
 10 (b) commence a lawsuit or arbitration proceeding for breach of contract
 11 or quantum meruit, and/or (c) commence an action on a payment bond on
 12 exhaustion of another legal remedy is against public policy and is void
 13 and unenforceable; provided that this subdivision shall not affect the
 14 validity of any insurance contract, workers' compensation agreement or
 15 other agreement issued by an admitted insurer.
 16 § 2. This act shall take effect immediately and shall apply to all
 17 contracts entered into, renewed, modified or amended on or after such
 18 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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