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Single Member of Condominium Board Owes Fiduciary Duty to the Condominium

A condominium offering plan provided that during the period of sponsor control, the Board of Managers would consist of one individual designated by the Sponsor. The Condominium later sued that individual, alleging that he breached his fiduciary duty to the Condominium by concealing known defects in the building and failing to address other reported defects, resulting in hazardous conditions.  The defendant moved to dismiss this claim on the ground that only the Sponsor, not the Board, was responsible for condominium affairs during the period of sponsor control.  The court denied the motion, noting that the Offering Plan provided that the sponsor would control condominium affairs “through its control of the Board,” which was effectuated through the individual it had designated.  Accordingly, the Board and its single member owed fiduciary duties to the Condominium and its unit owners at all times.  Bowery 263 Condominium, Inc. v. D.N.P. 336 Covenant Avenue LLC, 2019 N.Y. App. LEXIS 1293, 2019 N.Y. Slip Op. 1302 (1st Dep’t Feb. 21, 2019).