55-468 - Tort and contract liability.
§ 55-468. Tort and contract liability.
Neither the association nor any proprietary lessee except the declarant isliable for that declarant's torts in connection with any part of thecooperative which that declarant has the responsibility to maintain.Otherwise, an action alleging a wrong done by the association must be broughtagainst the association and not against any proprietary lessee. If the wrongoccurred during any period of declarant control, and the association givesthe declarant reasonable notice of and an opportunity to defend against theaction, the declarant who then controlled the association is liable to theassociation or to any proprietary lessee: (i) for all tort losses not coveredby insurance suffered by the association or that proprietary lessee, and (ii)for all costs which the association would not have incurred but for a breachof contract or other wrongful act or omission. Whenever the declarant isliable to the association under this section, the declarant is also liablefor all litigation expenses, including reasonable attorney's fees, incurredby the association. Any statute of limitation affecting the association'sright of action under this section is tolled until the period of declarantcontrol terminates.
A proprietary lessee is not precluded from bringing an action contemplated bythis subsection because he is a proprietary lessee or a member or officer ofthe association. Liens resulting from judgments against the association aregoverned by § 55-474.
(1982, c. 277.)