Condo Unit Owners Can Sue Board for Building Conditions

February 8, 2012

LVT Number: #23899

Condominium unit owners sued their board of directors for "abhorrent" living conditions. They claimed that there were holes in the floors and damage to walls, railings, and terraces. The board had promised to repair the conditions but had failed to do so. In the meantime, the board had asked the unit owners not to sue based on this fraudulent promise. The board asked the court to dismiss the complaint. The court ruled against the board, except that it dismissed the case against all but two of the individual directors.

Condominium unit owners sued their board of directors for "abhorrent" living conditions. They claimed that there were holes in the floors and damage to walls, railings, and terraces. The board had promised to repair the conditions but had failed to do so. In the meantime, the board had asked the unit owners not to sue based on this fraudulent promise. The board asked the court to dismiss the complaint. The court ruled against the board, except that it dismissed the case against all but two of the individual directors. The showing of bad faith and misrepresentations by the board and certain board members justified a case against them for fraud and breach of fiduciary duties. Any delay in bringing a timely lawsuit was excused by the board's misrepresentations.

Grubin v. Gotham Condominium: Index No. 115404/10, NYLJ No. 1202537591912 (Sup. Ct. NY; 12/21/11; York, J)

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