What's happening
This bill amends the law to specify that claims for money due from New York City School Construction Authority contracts accrue when written payment denial is delivered.
Why it matters
Clarifies when the clock starts for contractors to file claims for unpaid money. By specifying that a claim accrues only when a written denial of payment is delivered (not merely when payment is withheld or delayed), this amendment provides clearer guidance on deadlines, reducing uncertainty and potential legal disputes over timing.
May impact contractor risk and legal strategy. Contractors working with the New York City School Construction Authority (SCA) will know exactly when their right to sue begins, which affects how they plan their responses and legal actions if payment is denied.
Potentially prolongs the period before litigation must begin. Since accrual is tied to formal written denial, contractors may have more time to resolve payment disputes informally before being forced to initiate legal action, possibly encouraging settlement and reducing unnecessary lawsuits.
Standardizes notification processes. By requiring denial to be delivered personally, by certified mail, or as specified in the contract, the amendment ensures both parties have clear, documented evidence of when a claim accrues, protecting against misunderstandings or claims of non-receipt.
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Who cares
Headline styles
Set Lawsuit Deadlines for School Contracts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5016
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
Introduced by M. of A. DINOWITZ -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to claims and actions against the New York city school construction authority arising out of contracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 1744 of the public authorities law, as added by chapter 519 of the laws of 2014, is amended to read as follows:
2. No action or proceeding for any cause whatever, other than the one for personal injury, death, property damage or tort, which shall be governed by subdivision one of this section, relating to the design, construction, reconstruction, improvement, rehabilitation, repair, furnishing or equipping of educational facilities, shall be prosecuted or maintained against the authority or any member, officer, agent, or employee thereof, unless (i) it shall appear by and as an allegation in the complaint or moving papers, that a detailed, written, verified notice of each claim upon which any part of such action or proceeding is founded was presented to the board within three months after the accrual of such claim, that at least thirty days have elapsed since such notice was so presented and that the authority or the officer or body having the power to adjust or pay said claim has neglected or refused to make an adjustment or payment thereof, and (ii) the action or proceeding shall have been commenced within one year after the happening of the event upon which the claim is based; provided, however, that nothing contained in this subdivision shall be deemed to modify or supersede any provision of law or contract specifying a shorter period of time in which to commence such action or proceeding, or to excuse compliance with any other conditions required by contract to be satisfied prior to the commencement of such action or proceeding. In the case of an action
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09548-01-7
A. 5016 2
or special proceeding for monies due arising out of contract, accrual of such claim shall be deemed to have occurred as of the date payment for the amount claimed was denied by written notice delivered by personal service, certified mail or as otherwise provided by contract.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.