Condo Buyers Can't Bring Private Action Under N.Y. Disclosure Law

NEW YORK - New York's high court has held that condominium buyers cannot use a statutory disclosure law to bring a private fraud action over alleged building defects. Kerusa Co. LLC v. W10Z/515 Real Estate Limited Partnership, et al., No. 36 (N.Y. Ct. App.).

The Court of Appeals issued its holding on a certified question from an intermediate court, and also reversed the lower court's decision to allow the plaintiff to amend its complaint to add a common law fraud claim against the developer it accuses of hiding defects during construction of the building.

Kerusa Co. LLC sued W10Z/515 Real …