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Making New Law, Appellate Division Finds That Condo Board Not Liable for Repairing Newly Constructed Building and Finds That Obligation to Repair Remains with Sponsor; Adam Leitman Bailey, P.C. Victorious at Trial Level and Appeal

On November 8, 2009, the Appellate Division ruled that a building’s developer and not a condominium board shall be responsible for making repairs to a newly constructed building. In Lorne v. 50 Madison Avenue LLC, a unit owner sued the board of directors for failing to remediate a construction defect. A unanimous Appellate Division dismissed the condominium board from the lawsuit while determining that the sponsor was the proper party for the lawsuit. It should be noted that this is a case of first impression regarding the responsibilities of the sponsor and board of directors of a newly constructed building.

The court also found that where the unit owner sought to take matters into its own hands and remediate a construction defect, the board acted reasonably in asking the unit owner to sign the same alteration agreement that other unit owners had to sign. Finally, by ruling that the floor defect was, as per the condominium documents, a structural defect, and the obligation of the sponsor to repair, the court rebutted the unit owners’ attempt to shift repair responsibility to the condominium board.

  • Madison square park
    Adam Leitman Bailey, P.C. Prevails: Court Rules That Board of Managers Has No Duty to Repair Owners’ Unit

    Adam Leitman Bailey, P.C. Prevails: Court Rules That Board of Managers Has No Duty to Repair Owners’ Unit

    by Scott E. Mollen Condominiums—Construction Defects—Suit Against Sponsor, Board and Manager—Alteration Agreements—Res Judicata A DEFENDANT CONDOMINIUM board of managers (board), individual board members and a defendant management company (manager), moved to dismiss a complaint pursuant to CPLR 3211(a)(1); (5) and (7). The board and individual board member defendants also sought costs, sanctions and attorney fees. The plaintiff opposed the motions and cross-moved for sanctions against the defendants and their counsel and for attorney fees. This action is “the latest in...

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  • 50 madison
    Lorne v. 50 Madison Avenue LLC

    Lorne v. 50 Madison Avenue LLC

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  • Photo of 50 Madison Avenue
    Lorne v. 50 Madison Avenue, LLC

    Lorne v. 50 Madison Avenue, LLC

    65 A.D.3d 879 (Cite as: 65 A.D.3d 879, 886 N.Y.S.2d 1) Lorne v. 50 Madison Ave. LLC 65 A.D.3d 879, 886 N.Y.S.2d 1 NY,2009. 65 A.D.3d 879886 N.Y.S.2d 1, 2009 WL 2851987, 2009 N.Y. Slip Op. 06381 Simon Lorne et al., Respondents v 50 Madison Avenue LLC et al., Respondents, and Board of Managers et al., Appellants, et al., Defendants. Supreme Court, Appellate Division, First Department, New York September 8, 2009 CITE TITLE AS: Lorne v 50 Madison Ave. LLC...

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  • Photo of New York City condo buildings
    Condo Board’s Long Legal Nightmare Is Over

    Condo Board’s Long Legal Nightmare Is Over

    Habitat Magazine

    August 10, 2017 By Bill Norris   50 Madison Avenue, where shoddy construction has led to a decade of lawsuits (image via Google Maps) Aug. 10, 2017 — Courts rule that sponsor is responsible for faulty construction. Construction defects can have a long shelf life. As the condominium board at 50 Madison Avenue has learned, the legal ramifications of faulty construction can live on for a decade, or more. But based on a new court ruling, this board has reason...

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  • Photo of New York City buildings
    Adam Leitman Bailey, P.C. Prevails in Case Cited by Hot Topics Affecting Cooperatives and Condominiums

    Adam Leitman Bailey, P.C. Prevails in Case Cited by Hot Topics Affecting Cooperatives and Condominiums

    New York City Bar Association

    New York City Bar Adam Leitman Bailey, P.C. Prevails in Case Cited by Hot Topics Affecting Cooperatives and Condominiums – Cases and Marketplace Developments in the Last Six Months: Lorne v. 50 Madison LLC New York City Bar City Bar Center for CLE

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