Adam Leitman Bailey, P.C. – Sponsors No Longer Responsible for Building Repairs
In a decision of first impression, the Brooklyn Supreme Court held that a successor condominium sponsor is not liable for building defects caused by the original sponsor’s construction of the condominium. Justice Lawrence Knipel threw out a condominium board’s claim seeking to impose construction defect liability on a developer who purchased the interest of the condominium’s bankrupt original sponsor under a Chapter 11 Plan.
The Bayard Views Condominium, a 62-unit luxury building overlooking McCarren Park in Brooklyn, was completed just before the 2008 recession, which forced the original sponsor into Chapter 11 bankruptcy after it could sell only 25 apartments. In 2011, a subsidiary of the property group of the successor sponsor, a Brooklyn developer who was uninvolved with the building’s construction, was able to purchase the remaining 37 apartments under the sponsor’s Chapter 11 Plan.
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Adam Leitman Bailey, P.C. Appellate Victory: Successor Sponsors No Longer Responsible for Repairing Building
Adam Leitman Bailey, P.C. Appellate Victory: Successor Sponsors No Longer Responsible for Repairing Building
Adam Leitman Bailey, P.C. successfully defended purchasers of units in a condominium following the original sponsor’s bankruptcy against claims of individual units’ owners for breach of contract. The original sponsor of a condominium conversion declared bankruptcy after it was sued by individual unit owners for design and construction defects. In the bankruptcy proceeding, the firm’s client purchased almost 40 unsold units and unsold parking spaces “free and clear” of the defective pre-bankruptcy design and construction defects of the original sponsor....
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Court Lets Sponsor Off the Hook for Condo Defects
Court Lets Sponsor Off the Hook for Condo Defects
Habitat MagazineApril 27, 2017 — Sponsor not responsible for $2 million in construction flaws. Condo boards and unit-owners have several options when they move into a new building with shoddy construction. To avoid litigation, they can hire an engineer to document construction defects, then negotiate with the sponsor to correct them. If the unit-owners are unhappy with the repairs, both sides can agree to name a so-called “designated neutral” to arbitrate their disputes. If all else fails, there’s always the last...
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Fortis not responsible for $2M in defects caused by prior developer, Judge says in ruling against 20 Bayard Street residents
Fortis not responsible for $2M in defects caused by prior developer, Judge says in ruling against 20 Bayard Street residents
The Real DealBy Will Parker April 26, 2017 The company bought the condo building’s unsold units in 2011 after Isaac Hager took the project into bankruptcy. UPDATED, April 26, 4:00 p.m.: A court decision in Brooklyn last week will let Fortis Property Group get away with selling allegedly faulty condominiums in Williamsburg, for the simple reason that Fortis wasn’t the one that built them in the first place. When developer Isaac Hager’s company went into bankruptcy at the 62-unit Bayard Views Condominium at 20 Bayard Street on...
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Adam Leitman Bailey, P.C. Makes New Law, Defeating Successor Sponsor Construction Defect Claim Against Developer Who Bought Units From Bankrupt Sponsor
Adam Leitman Bailey, P.C. Makes New Law, Defeating Successor Sponsor Construction Defect Claim Against Developer Who Bought Units From Bankrupt Sponsor
In a decision of first impression, the Brooklyn Supreme Court held that a successor condominium sponsor is not liable for building defects caused by the original sponsor’s construction of the condominium. Justice Lawrence Knipel threw out a condominium board’s claim seeking to impose construction defect liability on a developer who purchased the interest of the condominium’s bankrupt original sponsor under a Chapter 11 Plan. The Bayard Views Condominium, a 62-unit luxury building overlooking McCarren Park in Brooklyn, was completed just...
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BOARD OF MANAGERS OF THE BAYARD VIEWS CONDOMINIUM v. FPG BAYARD, LLC, Fortis Property Group, LLC
BOARD OF MANAGERS OF THE BAYARD VIEWS CONDOMINIUM v. FPG BAYARD, LLC, Fortis Property Group, LLC
2017 WL 1435430 (N.Y.Sup.) (Trial Order)Supreme Court of New York.IAS Term, Commercial Part 4Kings CountyBOARD OF MANAGERS OF THE BAYARD VIEWS CONDOMINIUM, on behalf of individual unit owners, Plaintiff,v.FPG BAYARD, LLC, Fortis Property Group, LLC, Joel Kestenbaum, and Jonathan Landau, Defendants.No. 502885/14.April 21, 2017.Decision and OrderLawrence Knipel, J.S.C.*1 Mot. Seq. #1 The following e-filed papers read herein: NYSCEF#: Notice of Motion, Affirmation, Memorandum of Law, and Exhibits Annexed 23, 24, 25-43 Affidavit in Opposition, Memorandum of Law, and Exhibits Annexed...
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Bd. of Managers of the Bayard Views Condominium v. FPG Bayard, LLC
Bd. of Managers of the Bayard Views Condominium v. FPG Bayard, LLC
Thomson Reuters2017 WL 1435430 (N.Y.Sup.) (Trial Order) Supreme Court of New York. IAS Term, Commercial Part 4 Kings County BOARD OF MANAGERS OF THE BAYARD VIEWS CONDOMINIUM, on behalf of individual unit owners, Plaintiff, v. FPG BAYARD, LLC, Fortis Property Group, LLC, Joel Kestenbaum, and Jonathan Landau, Defendants. No. 502885/14. April 21, 2017. Decision and Order Lawrence Knipel, J.S.C. *1 Mot. Seq. #1 The following e-filed papers read herein: Notice of Motion, Affirmation, Memorandum of Law, and Exhibits Annexed NYSCEF#: 23,...
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Ruling has big implications for condo developer liability, makes it harder for condo boards to sue individual developers for construction defects
Ruling has big implications for condo developer liability, makes it harder for condo boards to sue individual developers for construction defects
The Real DealAttention, Brooklyn condo buyers: Good luck trying to hold your developer personally accountable By Will Parker The LLC veil used by condo developers in Brooklyn just became Kevlar. A new appellate court ruling will make it harder for condominium boards in the borough to sue individual developers of apartment buildings for construction defects. Over the years, a number of Brooklyn condo buyers filed lawsuits in New York Supreme Court against the actual developers behind the projects they lived in, alleging...
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