Court Puts Condo Investors on the Hook for Shoddy Construction

Wednesday, November 4, 2020

Leni Cummins discusses a New York State Appellate Division ruling that would require condominium investors to pay for any construction defects in The Real Deal. The Appellate Court upheld that condominium boards do not have to prove a fiduciary or confidential relationship between itself and the building’s sponsor when suing over construction defects. The case centers on a condominium comprised of 113 residential units and two commercial units dubbed Be@William. Completed in 2008, the condominium board began complaining about construction defects in 2010. A lawsuit alleging inferior work was filed by the board in 2013, and led to the Appellate Division ruling.

Contemplating the reach of the decision, Leni noted that it “is probably not as far as one would think because the affirmative and absolute language in the Be@William offering plan is not very common.”


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