N.Y. Court Dismisses Fraud Claims Against Condo Developers

NEW YORK - A New York judge recently denied condominium owners leave to sue developers for fraud for failing to disclose ongoing construction problems, saying that state law covering condo sales reserves such claims to the attorney general. Kerusa Co. v. W10Z/515 Real Estate, L.P., et al., No. 601610/2003 (N.Y. Sup. Ct., N.Y. Cty.).

In a corrected decision released on Feb. 22, New York County Supreme Court Justice Jane S. Solomon said that while state law allows condominium owners to bring common law fraud claims, the fraud alleged in this instance mirrored claims reserved to the attorney general under the …