GSL Decision Alert! – An Antidote for Poison
An Antidote for Poison
A decision has come down today from our MA Supreme Judicial Court which provides another significant victory for condominiums. For some time, developers of condominiums have included provisions in their condominium documents that make it almost impossible for associations to bring suits against for construction defects against the developer. As a prerequisite to instituting litigation for construction defects these provisions, usually referred to as “poison pill provisions” require, that the Board obtain a vote of 80% or 90% of the beneficial interest. Today, in deciding Trustees of the Cambridge Point Condominium Trust vs. Cambridge Point, LLC, the Supreme Judicial Court, holding that that such a provision is void as against public policy, stated “that it is overreaching for a developer to impose a condition precedent that, for all practical purposes, makes it extraordinarily difficult or even impossible for the trustees to initiate any litigation against the developers regarding the common areas and facilities of a condominium. “
GSL partners Henry Goodman and Ellen Shapiro were honored to be permitted to file an Amicus Curiae (friend of the Court) brief on behalf of Community Associations Institute of New England in this case which was originally filed by our fellow CAI member and colleague Edmund Allcock who represented the Plaintiff.
A link to the case is found at: https://www.mass.gov/files/documents/2018/01/19/12327.pdf As always, if you wish to discuss this case or any condominium matter, do not hesitate to reach out to Henry at firstname.lastname@example.org or Ellen at email@example.com.