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Condominium Unit Purchaser Has No Negligence Claim For Faulty Construction; Contract Claim Is Exclusive Remedy

In Board of Managers of Soho North 267 West 124th Street Condominium v. NW 124 LLC, 2014 N.Y. Slip Op. 02513 (1st Dep’t 2014), the Appellate Division reaffirmed that purchasers of condominium units that allegedly suffer from faulty construction may assert only breach of contract claims against the sponsor.  A purchaser may not assert claims alleging torts, such as negligence or negligent misrepresentation, where the duty that was allegedly violated arose from a contract between the parties.  Although plaintiff sought to rely on General Business Law article 23-A (the Condominium Act) and its implementing regulations, neither creates a special duty owed by the sponsor or a private right of action that could be enforced by a tort action.