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
School Construction | May 3, 2016
Florida clamps down on school construction spending
Critics fear rules will hamper ability to build schools with desired features.
Resiliency | May 2, 2016
Connecticut to develop new code standards for resiliency
Expected more frequent severe weather events due to climate change prompts review.
Contractors | Apr 29, 2016
OSHA issues advisory to protect workers from Zika virus
Construction industry workers considered at high risk.
Codes and Standards | Apr 28, 2016
New research finds 30 measures to significantly cut energy use
ASHRAE’s prescription cuts across all building types and climates.
Codes and Standards | Apr 27, 2016
Florida gives developers more time to install first responder radio signal systems
Expensive upgrades can be postponed for several years.
Codes and Standards | Apr 25, 2016
San Francisco becomes first big U.S. city to require solar panels on new buildings
Pertains to commercial and residential buildings shorter than 10 stories.
Codes and Standards | Apr 25, 2016
GSA adopts SITES land development and management rating system
Federal agency will use for properties with and without buildings.
Wood | Apr 22, 2016
Revised 2015 Manual for Engineered Wood Construction available
American Wood Council Document offers design information for structural applications.
Codes and Standards | Apr 20, 2016
OSHA updates eye and face protection standards in final rule
Becomes effective April 26.
Codes and Standards | Apr 18, 2016
Efficiency finance pilot project to spur retrofits on existing buildings
EDF and PG&E team up on interest-free loans for qualified projects.