The Appellate Division of the New York state court upheld a ruling last week that makes it easier for condo boards suing over construction defects to recoup money that investors earned from the project.
The court ruled that a condominium board does not have to prove a fiduciary or confidential relationship between itself and the building’s sponsor when suing over construction defects. The decision reverses a 2013 ruling that a condo board needed to prove a connection to investors to recoup funds from them for shoddy construction.
A lawyer working for the condo board involved in the case said investors can now be liable for shoddy construction, so they must be extremely cautious about the quality of the developers with whom they work. Another lawyer cited in an article by The Real Deal questioned whether this case would have such a sweeping impact, though.
It may be that courts interpret the case more narrowly due to specific language in the offering plan of the development.
Related Stories
Codes and Standards | Apr 17, 2018
Contractor charged with fraud in winning $200 million in federal contracts
Accused of falsely claiming veteran- and minority-owned business status.
Codes and Standards | Apr 16, 2018
Wide variations in adoption of National Electric Code could jeopardize safety
An NFPA report found that code adoption is under heavier political scrutiny, leading to delays and decisions motivated by factors other than safety concerns.
Codes and Standards | Apr 12, 2018
Corruption in New York City construction industry is common
Scale of projects, number of players involved contributes to problem.
Codes and Standards | Apr 11, 2018
Urgent need for government to make communities, infrastructure more resilient
More than 350 people died from extreme weather events in 2017.
Codes and Standards | Apr 10, 2018
Boosting energy efficiency helps reduce health risks
Cleaner air results in fewer heart attacks, respiratory disease, and premature deaths.
Codes and Standards | Apr 9, 2018
U.K. business leaders call for zero-carbon buildings by 2030
Real estate, construction industry executives among those supporting the goal.
Codes and Standards | Apr 5, 2018
In Houston, proposed rules would require building above 500-year flood level
Change would impact 85,739 pieces of property.
Codes and Standards | Apr 4, 2018
New ASTM standard supports stucco use in construction
Provides way to measure tensile strength in vertical applications.
Codes and Standards | Apr 3, 2018
LEED v4.1 O+M for Existing Buildings available for beta testing
Update said to be most inclusive and transparent platform to date.
Codes and Standards | Apr 2, 2018
Experts chosen for ICC, ANCR buildings resilience benchmarks project
Specialists to focus on community preparedness for disasters.