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Adam Leitman Bailey, P.C. Achieves Favorable Settlement of Construction Defects Claims Against a Sponsor

Plaintiff, a unit owner at a Queens County condominium, brought an action against the Sponsor and the Sponsor’s managing agent, asserting the following causes of action against the Sponsor, relating to the allegedly defective construction of the Plaintiff’s unit: (1) breach of contract; (2) breach of warranty; (3) breach of the NYC noise code; and (4) fraud, and seeking compensatory and punitive damages. Specifically, the Plaintiff unit owner alleged that the construction of the condominium’s plumbing system was so defective that it caused excessive noise in the Plaintiff’s unit.

First, Adam Leitman Bailey, P.C. successfully moved to dismiss every cause of action asserted against the Sponsor’s managing agent. The Court agreed with Adam Leitman Bailey, P.C.’s argument that dismissal was appropriate on two grounds: (1) the managing agent was shielded from liability because it acted as an agent for a disclosed principal; and (2) the plaintiff unit owner lacked any contractual privity with the management company.

Furthermore, using its expertise in construction defect litigation, Adam Leitman Bailey, P.C. was also able to secure dismissal of the Plaintiff’s cause of action for breach of warranty (as duplicative of the breach of contract cause of action), for breach of the NYC noise code (on the grounds that the NYC noise does not provide for a private cause of action and the Plaintiff failed to demonstrate that any alleged construction defects in his unit caused noise rising to the level of a private nuisance), and for fraud (on the grounds that such cause of action cannot be based on contractual representations and that the Plaintiff failed to sufficiently plead the elements of fraud).

Then, with only the breach of contract claim remaining, Adam Leitman Bailey, P.C. successfully negotiated a non-monetary settlement with the Plaintiff unit owner that required the Sponsor only to make minimal repairs to minor construction issues in the Plaintiff’s unit.

John Desiderio and Courtney J. Lerias of the real estate litigation groups of Adam Leitman Bailey, P.C. secured this victory.

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