N.Y. General Obligations Law Section 5-327
Consumers’ right to recover attorney’s fees in actions arising out of consumer contracts

1.

As used in this section, the following terms shall have the following meanings:

(a)

“Consumer contract” means a written agreement entered into between a creditor, seller or lessor as one party with a natural person who is the debtor, buyer or lessee as the second party, and the money, other personal property or services which are the subject of the transaction are primarily for personal, family or household purposes;

(b)

“Creditor” means a person who regularly extends, or arranges for the extension of, credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required;

(c)

“Seller” means a person who sells or provides or agrees to sell or provide the subject of a consumer transaction.

(d)

“Lessor” means a person who regularly leases, or arranges for the lease of, personal property which is the subject of a consumer contract.

2.

Whenever a consumer contract provides that the creditor, seller or lessor may recover attorney’s fees and expenses incurred as the result of a breach of any contractual obligation by the debtor, buyer or lessee, it shall be implied that the creditor, seller or lessor shall pay the attorney’s fees and expenses of the debtor, buyer or lessee incurred as the result of a breach of any contractual obligation by the creditor, seller or lessor, or in the successful defense of any action arising out of the contract commenced by the creditor, seller or lessor. Any limitations on attorney’s fees recoverable by the creditor, seller or lessor shall also be applicable to attorney’s fees recoverable by the debtor, buyer or lessee under this section. Any waiver of this section shall be void as against public policy.

Source: Section 5-327 — Consumers' right to recover attorney's fees in actions arising out of consumer contracts, https://www.­nysenate.­gov/legislation/laws/GOB/5-327 (updated Sep. 22, 2014; accessed Oct. 26, 2024).

5‑301
Certain employment contracts void 5‑311
Certain agreements between husband and wife void 5‑321
Agreements exempting lessors from liability for negligence void and unenforceable 5‑322
Agreements exempting caterers and catering establishments from liability for negligence void and unenforceable 5‑322.1
Agreements exempting owners and contractors from liability for negligence void and unenforceable 5‑322.2
Contents of certain construction contracts 5‑322.3
Payment bonds to be filed 5‑323
Agreements exempting building service or maintenance contractors from liability for negligence void and unenforceable 5‑324
Agreements by owners, contractors, subcontractors or suppliers to indemnify architects, engineers and surveyors from liability caused by ... 5‑325
Garages and parking places 5‑326
Agreements exempting pools, gymnasiums, places of public amusement or recreation and similar establishments from liability for negligence... 5‑327
Consumers’ right to recover attorney’s fees in actions arising out of consumer contracts 5‑328
Processing fee by holder of dishonored check 5‑331
Certain covenants and restrictions in conveyances and other agreements affecting real property void as against public policy 5‑332
Unsolicited and voluntarily sent merchandise deemed unconditional gift 5‑333
Validity of oil, gas or mineral land leases 5‑334
Option or right to acquire interest in property 5‑335
Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions 5‑336
Nondisclosure agreements 5‑337
Agreements requiring contractees to waive their rights in relation to expressing certain opinions about contractors void and unenforceable
Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 5-327’s source at nysenate​.gov

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