New condominium, cooperatives and HOA’s have to be mindful about time and rights vis-a-vis the sponsor. Statutes of limitations are the time that an association has to bring a lawsuit to assert claims, before the claims become time-barred.  It is often the easiest defense for a sponsor to end a lawsuit.

The 23-23 Condominium found this out the hard way by having almost all of its action against the sponsor for construction defects, dismissed on a summary judgment motion.  The Second Department explained that a “claim for damages arising from defective construction accrues on the date of completion of the work”.  If the time limit for bringing the claim has expired, then the plaintiff is out of luck.

The Governor issued Executive Orders tolling the statute of limitations for claims in New York for a particular period of time.  Make sure that you calculate in that tolling period and add it to your statute of limitations.  Whatever you do, don’t wait too long to find out that the sponsor is off the hook and your association’s owners are left holding the bag.

Here is the decision.