Under the AVOID Act, A ‘Wait and See’ Approach to Third-Party Litigation Is No Longer Viable, Published in New York Law Journal

In an article published in the New York Law Journal, Segal McCambridge Commercial Litigation Shareholder Justin Waytowich discusses how the AVOID Act (Avoiding Vexatious Overuse of Impleading to Delay) fundamentally reshapes third-party litigation strategy by imposing a strict 90-day window from the Answer to bring third-party actions. For lawsuits filed on or after the April 18, 2026 effective date, the old "wait and see" approach is no longer viable, requiring defense teams to immediately identify potential third-party defendants and implement decisive litigation strategies.

"Defense teams now face a truncated timeframe to investigate claims, identify potential third-party defendants, and implement decisive actions against any person or legal entity not a party who is or may be liable for all or part of Plaintiff's claim," Waytowich explains. "Simply put, for lawsuits filed on or after the Act's April 18, 2026, effective date, taking a 'wait and see' position is no longer viable."

Failure to comply with the AVOID Act's deadlines may result in piecemeal litigation, greater exposure, and the loss of risk transfer opportunities. Defense teams must make accelerated decisions based on the best information available as to how to style third-party pleadings and what third-party causes of action to plead against what parties. To navigate this new and pressurized third-party litigation landscape, defense firms, carriers, and claims professionals must be proactive and can no longer "wait and see."

Read the article in full, click here (subscriber-based).