{"id":894562,"date":"2018-07-18T11:46:15","date_gmt":"2018-07-18T17:46:15","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=894562"},"modified":"2018-07-18T11:46:15","modified_gmt":"2018-07-18T17:46:15","slug":"thinking-signing-release-homework","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/thinking-signing-release-homework\/","title":{"rendered":"Thinking of Signing a Release? Do Your Homework"},"content":{"rendered":"

Billie Jo Fatheree and Daniel Miske | Husch Blackwell<\/a> | July 11, 2018<\/p>\n

In a recent case out of New York (Board of Mgrs. Of 325 Fifth Ave. Condominium v. Continental Residential Holdings LLC<\/em>, 139 A.D.3rd<\/sup>\u00a0472 (2017)) a condominium board signed a broadly worded document, releasing the developer and multiple other developer-related entities and their \u201cheirs, executors, administrators, successor and assigns\u201d from claims associated with the construction and design of balconies and their related structures.\u00a0 The Board then sued some of the developer-related entities and individual members of the entities under \u201calter ego\u201d and \u201cpierce the veil\u201d theories.<\/span><\/p>\n

The Association argued that the developer-related entities were liable as they were \u201calter egos\u201d of the developer (entities that were set up to provide a legal \u201csafeguard\u201d for the developer), however, the appellate court sided with the developer-related entities, ruling that the release protected the entities even though they were not specifically named in the release. Further, the court found that the Association\u2019s veil-piercing argument was insufficient, stating that the \u201claw permits the incorporation of a business for the very purpose of escaping personal liability.\u201d<\/p>\n

Make sure your association, and their attorney, investigates all potential legal theories and determines all potential defendants before signing a release. Otherwise, your association may find that it released potentially liable parties, even though that was the association\u2019s intent.<\/p>\n","protected":false},"excerpt":{"rendered":"

Billie Jo Fatheree and Daniel Miske | Husch Blackwell | July 11, 2018 In a recent case out of New York (Board of Mgrs. Of 325 Fifth Ave. Condominium v. Continental Residential Holdings LLC, 139 A.D.3rd\u00a0472 (2017)) a condominium board signed a broadly worded document, releasing the developer and multiple other developer-related entities and their… Continue reading Thinking of Signing a Release? Do Your Homework<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10451,3],"tags":[9895,8610,10528,294,3],"class_list":["post-894562","post","type-post","status-publish","format-standard","hentry","category-home-owner-associations","category-insurance-claims","tag-advise-consult","tag-balcony","tag-condominium-board","tag-home-owner-associations","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nThinking of Signing a Release? 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