July 3, 2012 News

In Reversal, Purchaser’s Suit Against Condo Sponsor Permitted to Proceed

In a detailed 25-page opinion written by Judge Saxe, the New York Appellate Division, First Department has upheld the right of a prospective condominium purchaser to bring a breach of contract action against the sponsor of the condominium offering plan for making material changes to the construction of the condominium without affording the purchaser his contractual right of rescission. In The Plaza PH2001 LLC v. Plaza Residential Owner LP et al., the Appellate Division reversed the trial court’s dismissal of the purchaser’s contractual claims and rejected the argument that the purchaser’s contractual right of rescission could be negated by general disclaimers contained within the contract. Morrison Cohen represented Plaintiff The Plaza PH2001 LLC.