Massachusetts Supreme Judicial Court just decided Wyman v Ayer Properties LLC 469 Mass 64 (2014) deciding that Condominium associations can sue builders who construct common areas negligently. My write up on the Appeals Court ruling is here.
The problem sprang from these facts:
A builder negligently built a brick wall in a condominium common area. The damage to the wall stayed in the common area and did not reach any unit owners’ property. Condo unit owners can’t sue for damage to common areas, only the association can. The builder had no contract with the association, there was no contract claim.
The judge ruled that the trustees were not entitled to recover anything due to the rotting façade because that only damaged common areas but the Massachusetts top court allowed recovery.
COBB COMMENTS The condominium form of property ownership is the key to this decision. The economic loss rule “does not require a court to leave a wronged claimant with no remedy”.
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