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Cooperatives & Condominiums
Condo Board Was Intended Beneficiary of Agreement
Board of Managers of 100 Congress Condominium v. SDS Congress LLC
NYLJ 7/7/17, p. 28, col. 2
AppDiv, Second Dept.
(memorandum opinion)
In an action by a condominium board against a contractor and an engineering firm for breach of contract and professional malpractice, the engineering firm appealed from Supreme Court's denial of its motion to dismiss. The Appellate Division modified to dismiss the malpractice claim, but otherwise affirmed, holding that the condominium board's complaint sufficiently alleged that the condominium was either an intended beneficiary of the contract with the engineering firm or a successor-in-interest to the sponsor's construction contracts.
The contractor, an alleged agent of the sponsor, retained the engineering firm to inspect the building throughout construction. The condominium board brought this action against both the contractor and the engineering firm alleging that the building had been negligently constructed and inspected. The board contended that the engineering firm had breached its contract, and that the firm had committed professional malpractice. Supreme Court denied the engineering firm's motion to dismiss, and the firm appealed.
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