Grill and Schieber Lockdown Appellate Win for NY Developers

David M. Grill and Evan Schieber secured a decisive win at the Appellate Division for developers in New York.

In unanimously denying a condominium board’s application to reargue or seek leave to appeal to the Court of Appeals, the First Department, in the matter of The Board of Managers of the Modern Condominium v 350-52 West 23 LLC et al, has now made it much more difficult for condominium boards to sue individual principals of developer entities for damages sustained as a result of alleged construction defects.

Over the years, scores of condominium boards have filed actions against the individuals behind the developing entity, alleging that the individuals are responsible for construction defects. The Appellate Division confirmed that the individuals cannot be held personally liable for construction defects merely by action in their representative capacities on behalf of the developer entity.

This decision is a significant victory for developers in the ever-evolving realm of condominium developer liability.