STATE OF NEW YORK
________________________________________________________________________
S. 1216 A. 528
2013-2014 Regular Sessions
SENATE - ASSEMBLY(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 § 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
