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
The bill, if enacted, would fundamentally alter how contracts are structured within the construction sector. By rendering certain conditioning clauses void as against public policy, S09428 is designed to facilitate access to legal remedies for subcontractors and material suppliers. This change would apply to all contracts entered into, renewed, or modified after the bill becomes law. As a result, it could lead to a stricter adherence to fair practices in construction agreements and help prevent scenarios where subcontractors and suppliers are unduly restricted from seeking compensation owed to them for their services.
Summary
Senate Bill S09428 aims to amend the general obligations law in New York by voiding agreements that condition a subcontractor's or material supplier's right to commence a lawsuit or arbitration proceeding for breach of contract or quantum meruit. This change is intended to enhance the legal standing and protection of subcontractors and suppliers within the construction industry, ensuring they have the means to seek legal recourse without facing contractual barriers that may otherwise limit their rights. The bill highlights a movement towards supporting those who are often in disadvantaged positions in contractual agreements, promoting fairness in dealings related to construction projects.
Contention
Potential points of contention surrounding S09428 may include concerns from general contractors and larger firms within the construction industry, who might argue that the bill could lead to an increase in litigation costs or disrupt established business practices. Critics may also worry that the elimination of such agreements could foster an environment of uncertainty for contract negotiations. On the other hand, proponents argue that this legislative change is crucial for protecting vulnerable parties and ensuring that justice is accessible for those in the construction field who are often affected by unfair contracting practices.
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.