Back in September the resident-run condo board of 432 Park Avenue in Manhattan sued the developer of the building for $125 million to repair 1,500 alleged defects to the luxury condo building. According to the lawsuit, multiple residents experienced flooding in their units and noise as a result of alleged building defects. They also reported elevators that would get stuck and trap residents for hours.
The lawsuit further alleges that the construction issues have affected the building’s management, causing common charges to go up by 39% and insurance premiums to go up 300%.
The building’s developer denies the allegations made in the September lawsuit, arguing the allegations of safety defects were exaggerated, and that many of the problems it acknowledged were either caused and/or exacerbated by the residents themselves. According to the developer, it tried to address some of the issues listed in the residents’ lawsuit, but it claims the condo association either cancelled appointments or blocked access to the building when repairs were scheduled to be made.
As a result, the developer has filed a counter lawsuit against the condo board for defamation. According to the developer’s lawsuit, 90% of the building’s units were sold at the time the condo association filed its lawsuit, but sales dropped dramatically after the residents started making their allegations against the building’s developer. To back up its point, the developer pointed out that, overall, 2019 was a strong year for luxury condo sales, suggesting the lag in sales at the 432 Park Avenue building was most likely due at least in part to resident complaints. The developer has not specified the amount of damages it is seeking in its lawsuit against its residents, but it’s likely to be tens of millions of dollars.
The president of the condo board denies all the allegations made in the developer’s defamation lawsuit. Continue reading ›