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.
Impact
By eliminating these conditional agreements, the bill aims to enhance the legal protections available to subcontractors and material suppliers in the construction industry. As a result, these parties will have greater assurance that they can seek legal recourse without facing limitations imposed by contractual agreements. The bill seeks to reinforce the inherent rights of these parties to demand payment for services rendered, and take necessary actions to recover owed funds when disputes arise.
Summary
Bill A10634 proposes an amendment to the General Obligations Law of New York to void certain agreements that limit a subcontractor's or material supplier's ability to commence legal actions or arbitration for breach of contract or on a quantum meruit basis. This amendment primarily targets covenants, promises, agreements, or understandings tied to construction and maintenance contracts that condition a contractor's rights to file a claim or pursue legal action based on another legal remedy's exhaustion.
Contention
While supporters of the bill argue that it will protect smaller subcontractors and suppliers from unfair contractual terms imposed by larger contractors, there are concerns related to its implementation. Critics may raise issues about how this legislation could potentially increase the frequency of litigation within the construction sector, which may lead to higher costs for contractors and affect project timelines. Moreover, some stakeholders could argue that parties should have the autonomy to negotiate terms that suit their business arrangements without state intervention.
Same As
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.
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.
Amends provisions of law governing arbitration proceedings; specifies fees and expenses with regard to employment or consumer arbitration proceedings; directs certain sanctions on a party which breaches an arbitration agreement.
Amends provisions of law governing arbitration proceedings; specifies fees and expenses with regard to employment or consumer arbitration proceedings; directs certain sanctions on a party which breaches an arbitration agreement.
Amends provisions of law governing arbitration proceedings; specifies fees and expenses with regard to employment or consumer arbitration proceedings; directs certain sanctions on a party which breaches an arbitration agreement.
Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators; establishes prohibited arbitration agreements and provisions; requires disclosure of information by certain arbitrators.
Enacts the "anti-waiver of employment rights act" to invalidate any express or implied contractual provision waiving or otherwise limiting any employee's substantive or procedural rights, remedies, or claim.
Enacts the "anti-waiver of employment rights act" to invalidate any express or implied contractual provision waiving or otherwise limiting any employee's substantive or procedural rights, remedies, or claim.
Provides that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and the arbitrator's findings of fact and conclusions of law.
Provides that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and the arbitrator's findings of fact and conclusions of law.