The board of a 66 unit luxury new construction condominium in Queens hired Adam Leitman Bailey, P.C. after the board’s numerous attempts at trying to compel the condominium’s sponsor to remediate the serious facade, plumbing, and leaking conditions failed. Adding insult to injury, the condominium’s sponsor was trying to force the board to purchase the residential unit designated as the resident managers unit for an inflated price financed by the sponsor, forcing the board to pay an unconscionable interest rate on the mortgage to the sponsor. Under the terms of the condominium’s offering plan, the board did have the obligation to purchase the unit, but Adam Leitman Bailey, P.C. was able to forestall the closing in order to use the asset as a bargaining chip during settlement discussions pertaining to the construction defects.
Without ever having to turn to court or utilize intervention of the Office of the Attorney General, we negotiated a settlement with the once stonewalling sponsor. The board gained the following in the final settlement: transfer of the $650,000 resident manager’s unit free and clear, all facade remediation work, $150,000 cash to compensate the board for plumbing remediation, and $100,000 to cover expenses incurred by the board to pursue the sponsor, which covered all attorneys’ and engineering fees.
Adam Leitman Bailey and John M. Desiderio represented the Board of Directors on behalf of ALB, P.C.