Court Affirms Dismissal of N.Y. Condo Owner's 3rd-Party Claims

NEW YORK - A condominium owner sued for economic losses by a business tenant for failing to repair water leaks and mold damage cannot seek indemnification from the building's developers or the neighbor who caused the leaks, a New York appellate court affirmed Jan. 10. Edge Management Consulting, Inc. v. Blank, Index No. 115225/02, 590926/03 (N.Y. Sup. App. Div., 1st Dept.).

The New York Supreme Court Appellate Division, 1st Department, held that defendant and third-party plaintiff Blank Trust could not pursue an indemnification action against developers for purely economic loss damages, and is prevented by its own negligence from pursuing …