Written by Richard Siegler and Dale Degenshein on August 28, 2014
It happens more often than you might think, and it's a cautionary tale to all boards: Did we actually file the lawsuit we intended to? We think we did.
The two-building, 73-unit Clermont Greene condominium in Fort Greene, Brooklyn, has a seven-member board, with three of those members affiliated with the sponsor, Vanderbilt Mansions. The board, claiming construction defects, building code violations and hazardous conditions, hired Howard L. Zimmerman Architects to investigate. HLZA reported several defects related to inadequate or poor workmanship or designs that failed to meet industry standards.
The board began an action, asserting claims for breach of contract, warranty, and fiduciary duty. There was also a demand for an accounting. The sponsor's claim in response? That the board never authorized the start of the lawsuit at a properly noticed meeting of the board.
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