Scott Mollen

Condominiums—Construction Claims Against Sponsor, General Contractor, Subcontractors and Architect—Court Denies Motion To Compel Arbitration—Claims Were Inextricably Intertwined—A Contrary Decision "Would Create an Unworkable Fracture Between the Various Parties" and "Would Prolong the Litigation and Invite an Inconsistent Result"

The plaintiff is a condominium corporation.  The defendant was the condominium sponsor.  Pursuant to separate agreements with the sponsor, a third-party defendant acted as the general contractor (GC) for the condominium project.  Third-party defendant entities were subcontractors for the GC.  Two third-party defendants were alleged "alter-egos" of one of the subcontractors.

In August 2018, the plaintiff commenced the subject action, seeking to recover damages arising from water leaks that were allegedly caused by the GC's failure to construct the building in accordance with all "applicable building codes, plans, and specifications" as required by the contract between the plaintiff and (sponsor).

The complaint cited water damage from persistent leaks arising from multiple sources, "including from gaps in the roof membrane, a missing skirt piece, lack of waterproofing in the roof, aluminum copings on the roof that were improperly fastened with screws driven into wooden boards, lack of waterproofing for the bulkhead door on the roof, improper pitch of the balconies of the apartments, and an improperly installed Exterior Insulated Finishing System…."