A condo association can recover against the builder or developer for negligently performed construction according to a 2012 Massachusetts Appeals Court case Wyman v Ayer Properties.
The case interpreted a rule few really understand – the economic loss rule. The rule is based on the idea that lawsuits between people who have no contract with each other should have some limits.
In the Wyman case the brickwork facade of the renovated mill building was deteriorating. This exterior element was part of the condo common area. The case decided that condo associations can sue developers for common area damages caused by the developer’s negligence.
Developers’ already considerable risk of getting sued is even greater now.