Recent Decision Limits Liability of Condo Sponsor’s Principal (NY)

On May 24, 2017, a New York appeals court dismissed construction defect claims against a condominium sponsor’s managing members and principals. The plaintiff Board of Managers sought to hold these individual defendants personally liable for the corporate sponsor’s breach of contract. But in Board of Managers of 125 North 10th Condominium v. 125North10, 150 A.D.3d 1065 (2d Dept. 2017), the court extended to a sponsor’s principals and members the rule which precludes claims against sponsors based on their alleged violations of the offering plan, merely by reason of those individuals’ certification of the offering plan in accordance with the requirements of the Martin Act.  Read the article……………


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