What's happening
This bill sets a ten-year statute of limitations for lawsuits against engineers, architects, surveyors, and contractors for defects in property improvements.
Why it matters
Limits long-term liability for design and construction professionals. , which could reduce the cost and availability issues of professional liability insurance, potentially making it easier and more affordable for engineers, architects, and contractors to operate.
May shift responsibility for property maintenance and defects to property owners after ten years. , incentivizing regular upkeep and monitoring by owners, and possibly reducing “deep pocket” litigation long after a project’s completion.
Exempts claims by those with a direct contractual relationship (privity) with the professional or contractor. , so property owners or clients who directly hired the professional still retain certain legal recourse, while future purchasers or third parties face new limitations.
Establishes clear start and end points for liability. , reducing legal uncertainty for professionals and contractors, but potentially leaving individuals harmed by latent defects after the ten-year window with no ability to recover damages from those who designed or built the improvement.
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Who cares
Headline styles
Limit Lawsuits Against Builders
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Lawsuits After 10 Years
In Assembly Committee · Higher Education · Sponsor J. Gary Pretlow
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5158
2019-2020 Regular Sessions
IN SENATE
April 11, 2019
Introduced by Sens. GRIFFO, RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to providing a statute of limitations for certain actions against professional engineers, architects, landscape architects, land surveyors and construction contractors and to repeal section 214-d, subdivision (h) of rule 3211 and subdivision (i) of rule 3212 of the civil practice law and rules relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Statement of findings and purpose. The legislature finds that (a) the open-ended and continuing liability imposed upon members of the design professions and construction contractors, due to alleged deficiencies relating to improvements to real property, has resulted in an unfair burden on such professionals and a general increase in the cost of both public and private improvements to real property, (b) the cost of maintaining adequate insurance coverage is so expensive that a significant number of design professionals and construction contractors are forced to forego insurance coverage altogether to the detriment of the public's safety and welfare. The legislature further finds that the best designed and constructed improvement is dependent upon proper maintenance to preserve its integrity and safety and it is thus of importance to the public safety and welfare to ensure than an owner maintains and repairs that which is the property of the owner. The legislature therefore finds that it is necessary and desirable to establish a time limit after which tort claims for personal injury or wrongful death may not be asserted against such professionals and contractors. That statute of repose set forth herein, with a claim accruing on the date that the improvement was completed, will preserve the liability of the professional and contractor during a period in which the defects, if any, will
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04816-01-9
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be revealed, and therefore will establish an appropriate limit on liability, while affording adequate protection to the public.
§ 2. Section 214-d of the civil practice law and rules is REPEALED and a new section 214-d is added to read as follows:
§ 214-d. Limitations on certain actions against professional engineers, architects, landscape architects, land surveyors or construction contractors. 1. Except as otherwise provided in subdivision two of this section, no action to recover damages for injury to the person or for wrongful death or for damage to property nor any action for contribution or indemnity for damages sustained on account of such injury or wrongful death or damage to property arising from any defect in the structure or improvement resulting from the design, planning, or supervision of construction of an improvement to real property shall be brought against a professional engineer, architect, landscape architect, land surveyor or construction contractor more than ten years after the completion of such improvement.
2. If, by reason of such defect, an injury to the person or an injury causing wrongful death or damages to property occurs during the tenth year after completion, an action to recover damages for such injury or wrongful death or damage to property may be brought within one year after the date on which such injury occurred, but in no event may such action be brought more than eleven years after the completion of the improvement.
3. The limitations prescribed by this section shall not apply to actions brought by one in contractual or professional privity with the engineer, architect, landscape architect, land surveyor or construction contractor and shall not be asserted by way of defense by any person in actual possession or control as owner, tenant, or otherwise, of such an improvement at the time any defect in such improvement constitutes the proximate cause of the injury or death for which it is proposed to bring an action.
4. For purposes of this section an improvement shall be deemed to be "completed" (a) when, after the improvement has been started, a permanent certificate of occupancy is issued by the municipality in which the improvement is situated, if such is required or is actually issued pursuant to law or regulation; or (b) if a public improvement, upon the acceptance of the improvement by the owner, if a certificate of occupancy is not required and has not been issued or (c) on the earlier of the following dates, if the provisions of paragraphs (a) and (b) of this subdivision do not apply (i) four months prior to the last day on which mechanic's lien, resulting from work performed or materials furnished with respect to such improvement, can be filed; or (ii) upon the owner's final payment for services rendered or materials supplied with respect to such improvement.
5. An architect, engineer, landscape architect, or land surveyor shall mean a person licensed or registered as an architect, engineer, landscape architect or land surveyor, pursuant to the provisions of the education law or any partnership or corporation lawfully performing architectural, engineering, landscape architectural or surveying services.
§ 3. Subdivisions 4 and 5 of section 214 of the civil practice law and rules, as separately amended by chapters 485 and 682 of the laws of 1986, are amended to read as follows:
4. an action to recover damages for an injury to property except as provided in [section] sections 214-c and 214-d;
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5. an action to recover damages for a personal injury except as provided in sections 214-b, 214-c, 214-d and 215;
§ 4. Subdivision (h) of rule 3211 and subdivision (i) of rule 3212 of the civil practice law and rules are REPEALED.
§ 5. Nothing contained in this act shall be construed as affecting rights, obligations or duties arising under any contract entered into or any cause of action resulting from an injury which occurred prior to the effective date of this act.
§ 6. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all actions commenced on or after its effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the civil practice law and rules, in relation to providing a statute of limitations for certain actions against professional engineers, architects, landscape architects, land surveyors and construction contractors and to repeal section 214-d, subdivision (h) of rule 3211 and subdivision (i) of rule 3212 of the civil practice law and rules relating thereto
Purpose
To establish time limits after which tort claims for personal injury or wrongful death may not be asserted against design professionals and construction contractors.
Summary of provisions
Repeals section 214(d), subdivision (h) of Rule 3211 and subdivision (i) of Rule 3212, and adds a new section 214(d) to the Civil Practice Law and Rules ("CPLR") to establish a ten year statute of repose for profes- sional injury or wrongful death actions brought against professional engineers, architects, landscape architects, land surveyors or construction contractors. The accrual date for the limitations period would be the date of completion of the project. The term completion is defined in subsection 4 of the proposed statute. The bill also includes a one-year extension of time (or grace period) so that if an injury or death occurs during the tenth year after completion of the project the plaintiff will have an extra year to commence an action.
Subsection 3 of the proposed statute provides that the affirmative defense shall not be asserted by an architect, engineer, landscape architect, land surveyor or construction contractor in actual possession or control of the premises at the time an injury occurs. Subsection 3 also limits the applicability of the ten-year statute of repose to third party actions, thereby leaving intact the existing 3 or 6-year statute of limitations governing actions by an owner/client.
Justification
Under current law, a cause of action grounded on a theory of simple negligence brought by a third party (not an owner of building or struc- ture) against a design professional or construction contractor is governed by a three year statute of limitations and the cause of action does not accrue until the injury takes place -- even if the plaintiff is injured 20, 30, 50 or 100 years after the design professional has completed work on the building or structure. (See CUBITO V. KRIESBURG, 51 N.Y.2d 900, affirming 69 A.D.2d 738 (1980). Although there is an expedited procedure for those claims brought more than 10 years after the completion of the design professionals' or contractors' work, design professionals and contractors remain answerable to alleged negligence claims commenced indefinitely after project completion; many design professionals and contractors are thus forced to carry insurance cover- age even after they retire from the profession. The insurance problem is exacerbated because insurance coverage is only available on a "claims- made" basis rather than an "occurrence" basis - thereby requiring the professional and contractor to maintain insurance coverage well into retirement.
Legislative history
2011-12 S.4782 Judiciary Committee/A.2475 Higher Ed Committee. 2014 S.3334 Judiciary Committee/A.5301 Higher Ed Committee. 2015-16 S.4931 Judiciary Committee/A.2545 Higher Ed. Committee. 2017-18 - S.5582 Judiciary Committee/A. 2198 - Higher Ed Committee.
Fiscal implications
None.
Effective date
The first of January after the date it becomes law and shall apply to all actions commenced on or after its effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.