Wyman v. Ayer Properties, LLC (Massachusetts)
The question raised in this case is whether the economic loss doctrine may preclude an organization of unit owners from recovering against a condominium developer for defective construction, and if so, whether the economic loss doctrine can be satisfied by an association demonstrating that a defective element caused harm to other common area property or units.
Shortly after turnover of control from the condo trust to a unit elected owner board, the plaintiffs engaged an engineering consultant to investigate possible construction defects. The investigation revealed deficiencies associated with the windows, the roof and masonry of the building. The Trial Court ruled that the windows and roof had been deficient but that economic loss doctrine precluded an assessment for injury to masonry.
The plaintiff and the defendant both filed appeals. The appeal court affirmed the plaintiff’s claims regarding the windows and roof and also ruled that damage to the masonry be included in the award, but elected to apply the trial courts 20% reduction which factored in earlier-time repair costs. Both parties filed an application for further appellate review. The case has been referred to the Supreme Judicial Court of Massachusetts.
Brief: CAI's Amicus Brief
Prior Ruling: Lower Court Ruling
Status: Pending
CAI Amicus Brief Author: Henry Goodman, Esq.
CAI Amicus Brief Review Committee: Richard Ekimoto, Esq; Michael Karpoff, Esq; Gary Daddario, Esq; Marc Markel, Esq; Lara Anderson, Esq.