Condominiums and co-ops occupy the greatest portion of New Yorker’s real estate world. Many believe that new construction is the jewel of that grouping, and will purchase a unit well before completion. New owners depend on the reputation of the sponsor. How the building will come out is an open question, and in Board of Mgrs. of the 125 N. 10th Condominium v 125 N. 10, LLC
2014 NY Slip Op 50035(U) Decided on January 6, 2014 Supreme Court, Kings County Demarest, J. we see what happens after the residents predominate on the board and the sponsor no longer has control. It’s not a pretty sight.
In this case there a a very large number of parties, and an even larger number of motions. Read on, and see how the claims are mostly dismissed, even after the complaint alleges that "According to plaintiff, Sponsors, however, did not deliver a Building in accordance with the Plans and Specifications set forth in the Offering Plan, but, instead, the building was "rife with construction problems," including improperly designed and constructed walls, roofs, and foundation, which have resulted in water infiltration and significant property damage, as well as non-compliance with New York City Department of Building ("DOB") Codes. Other issues complained of include scalding hot water that flows through the residential fixtures, the persistent break down of the building’s heating and cooling systems, severe drafts from the windows, extensive leaking from ceilings, flooding in the cellar garage, noxious odors permeating the units, and a dangerous condition created by terrace railings at the top of the ten-story building, which are designed so that it is possible for children to climb over them.
When the defects were discovered, the Sponsor-controlled board requested that all defendants return to the Building to inspect their designs, plans, and work, to determine how to rectify the problems. However, despite numerous inspections, plaintiff claims that the defects remained unresolved. Accordingly, in 2011, the Board, which was no longer Sponsor-controlled,[FN2] retained a non-party firm, RAND Engineering & Architecture, P.C. (" Rand") to perform a visual survey of the building to determine the cost of making repairs, which were estimated to cost at least $2 million. Plaintiff claims to have performed essential repairs to the roof, in addition to other repairs, which have cost much more than estimated by Rand. Despite these expenditures, plaintiff contends, numerous defects still require repair. Finally, plaintiff refers to a case recently filed in Kings County wherein an individual named Tirpak names the Board as defendant, alleging that by reason of a dangerous and defective condition existing on the roof in violation of DOB code, he fell from the roof and was paralyzed from the waist down. "
Here are the results: As all of plaintiff’s claims are dismissed as to Penmark, the complaint against Penmark is dismissed with leave to plaintiff to replead with respect to any viable contract causes of action related to the Management Agreement.
As all of plaintiff’s claims against Scarano Defendants are dismissed, the complaint is dismissed as to Scarano Defendants.
As all of plaintiff’s claims against Cucich Defendants are dismissed, the complaint is dismissed as to Cucich Defendants.
As all of plaintiff’s claims against Seta Defendants are dismissed, the complaint is dismissed as to Seta Defendants.
As all of plaintiff’s claims are dismissed as to Simon Schwartz, individually, the complaint is dismissed only as to Simon Schwartz, individually, without prejudice to his litigating his cross and counterclaims against the remaining parties.
As all of plaintiff’s claims are dismissed as to Jaccarino, the complaint is dismissed as to Jaccarino, individually.
As all of plaintiff’s claims against Sharon Defendants are dismissed, the complaint is dismissed as to Sharon Defendants.
As all of plaintiff’s claims against AE Design are dismissed, the complaint is dismissed as to AE Design.
All cross claims against the moving defendants are dismissed without prejudice to an aggrieved defendant bringing a third party action against a co-defendant who has been dismissed from this case as a result of this decision.
This constitutes the decision and order of the Court. "