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 | Dec 9, 2020
Investors want building resiliency plans and risk mitigation practices
Owners should assess risk, insurance coverage, and ability to withstand disasters.
Codes and Standards | Dec 4, 2020
OSHA cites more than 200 employers for COVID-19 violations
Agency releases guidance on lessons learned from pandemic inspections.
Codes and Standards | Dec 1, 2020
Pandemic spurs nearly 16 million people to move from major cities
Most of the movement seems permanent.
Codes and Standards | Nov 30, 2020
USGBC ready to catalyze LEED Positive future
New programs, updates will spur shift to regenerative strategies.
Codes and Standards | Nov 30, 2020
Updated spec for self-adhering flashing surrounding exterior fenestration products released
FGIA document was last updated in 2013.
Codes and Standards | Nov 30, 2020
Finalized 2021 Energy Code leaves out future-proofing provision
Appeals process nixed requirement for residential electrification readiness.
Codes and Standards | Nov 23, 2020
GBCI turns over GRESB ownership to global investment firm
Organization assesses sustainability performance of real estate and infrastructure portfolios and assets.
Codes and Standards | Nov 23, 2020
New industrywide clay brick EPD launched
Contributes toward LEED v.4.0 and v.4.1 materials and resources requirements.
Codes and Standards | Nov 19, 2020
The ‘15-minute city’ could transform municipal planning
Concept aims for car-free living.
Codes and Standards | Nov 18, 2020
Commissioning study finds median energy savings of 3% to 16%
Berkeley Lab examines results of commissioning across building types.