July 2012 – Martin Crevina obtains $3.8 Million judgment for Construction Defects And Accounting Deficiencies against high-rise developer
July 1st, 2012 | News
Martin N. Crevina, a partner at BF&C, obtained a judgment of $3,899,532 for construction defects and accounting deficiencies against the sponsor of a converted condominium high-rise in Jersey City. After entering default against the sponsor and holding a contested proof hearing, the court held the sponsor liable for defects in the construction of the condominium, finding that the engineering report that the sponsor included in its Public Offering Statement was deficient because it did not adequately disclose the existing conditions of the condominium at the time of the conversion. The court also awarded the Association almost $2.1 million on its claim that the sponsor underfunded the Association’s replacement reserves. In a ruling of significance to associations that have been the victim of a sponsor’s inadequately funded replacement reserves, the court held the sponsor liable for the difference between its replacement reserve schedule and the schedule prepared by the Association’s engineer – for the full useful life of each component in the reserve study.