Schieber and Gise Win Summary Judgment in Construction Defect Case

May 12, 2020 | Real Estate, Zoning & Land Use | Commercial Litigation | Construction

Evan R. Schieber and David Gise received a sweeping victory for the firm’s clients that may have far reaching implications for construction defect claims in New York.  In the Board of Managers Of The Latitude Riverdale Condominium v. 3585 Owner, LLC et. al., Supreme Court, Bronx County, Index No. 27319/2016E, the Board of Managers sought millions of dollars in damages against the sponsor entity and its principles arising out of alleged construction defects.

In the complaint, the Board sought to expand liability for the construction defects to the sponsor’s principles and affiliates and sought to hold them all liable under theories of fraudulent inducement, breach of fiduciary duty, breach of the Condominium By-Laws and under theories of constructive and actual fraudulent conveyances. Evan and David, on behalf of the Sponsor principles and affiliates, moved for summary judgment to dismiss all of the claims in the action other than the breach of contract claims against the sponsor entity.

The Court granted the motion in its entirety. The Court, in refusing to extend liability to the Sponsor principles, has provided critical protections for individuals who participate in condominium offerings.

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