Nadel & Ciarlo, P.C.

Construction dispute in Brooklyn project leads to litigation


Litigation is a risk that comes with the territory on big real estate developments. The L Lofts condominium project in Brooklyn is no exception. The developers have recently been hit with a lawsuit alleging the developers failed to remedy a number of construction defects in the property.

The suit was brought by the condo board and alleges claims for breach of contract, fraudulent transfer of money and fraud. The alleged construction defects include code violations such as faulty roofing and water leakage.

The developers deny the allegations in the lawsuit. They assert that the problems stem from storm damage several years ago, which is not their responsibility as a sponsor to fix.

This is the third lawsuit alleging similar violations against the same developers. The board at another building in Brooklyn brought complaints in March of 2014 alleging water leaks and other construction problems. The developers filed suit demanding access to the property to perform an inspection of the claimed defects. Another suit was filed in 2010 by a condo board in Manhattan alleging similar problems at their building.

Construction litigation is a complex area of the law. Successfully litigating a case on behalf of a commercial developer, builder, building owner or contractor requires familiarity with construction contract terms, including the terms in standard American Institute of Architects contracts. Many of these cases settle out of court, but getting a successful settlement requires a thorough understanding of the facts and the law of the case, and a comprehensive evaluation of the risks and benefits of going to trial.

Source: Therealdeal.com, "Pair of developers facing third lawsuit - but similar allegations," David Jones, June 24, 2014

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