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 15, 2020
Embodied carbon footprint can be reduced by using conventional materials
High-SCM concrete, and cellulose and wood fiber insulation among the greener alternatives.
Coronavirus | Apr 13, 2020
COVID-19 alert: City conducts a 'virtual building inspection' to allow Starbucks and bank to open
Bothell, Wash., issues a certificate of occupancy to developer after inspecting the property online.
Codes and Standards | Apr 13, 2020
Design competition focuses on reducing urban heat island effect
Cool Abu Dhabi aims to transform urban life in the Middle East.
Codes and Standards | Apr 13, 2020
What building science says about reducing COVID-19 transmission
Impact of temperature and relative humidity is unclear.
Codes and Standards | Apr 9, 2020
Owners retrofitting properties, monitoring performance during epidemic
Covid-19 outbreak may lead employers to reevaluate office commitments.
Codes and Standards | Apr 7, 2020
Dept. of Labor publishes guidance on paid sick leave, expanded family and medical leave
Includes fact sheets for employees, employers, and a questions and answers document.
Codes and Standards | Apr 1, 2020
Standards and codes meetings halted, postponed
ASTM International cancels in-person standards meetings; DOE’s National Energy Codes Conference postponed.
Codes and Standards | Mar 26, 2020
Ransomware attack on Canadian contractor underscores need for cybersecurity
Victimized company Bird Construction has defense, law enforcement contracts.
Codes and Standards | Mar 23, 2020
Contractors should scrutinize contracts carefully amid Covid-19 crisis
Compliance with time-sensitive notice requirements and careful documentation required.
Codes and Standards | Mar 23, 2020
Florida legislature passes bill to reduce retainage on state and local projects
House and Senate vote is nearly unanimous; law would go into effect Oct. 1.
