TAKEAWAY Sometimes less is more and discretion is the better part of valor. When a condo board wants to sue for construction defects, it should be careful about who it names in the lawsuit. This case shows that naming successor sponsor/developers or a sponsor/developer’s individual members unnecessarily can lead to wasted time and dismissed claims. In this situation, since the construction defects were solely created by the original sponsor/developer or on behalf of the sponsor/developer, the claims against the successor sponsor/developers and sponsor/developer executives were thrown out entirely. Significantly, the case also confirms that condo boards can only bring viable fraud claims based on affirmative misrepresentations in the offering plan, not omissions in the offering plan.
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