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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 116707
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I own a condo unit, our condo association boards consists of

Customer Question

I own a condo unit, our condo association boards consists of 5 neighbors, also the association has hired a condo management company to do the maintenance.
Recently one of the neighbors has filed a law suite against the cobdo managent company for her basement damage that caused by rain.
The management company has contacted board member and says law suite against them has the essence of law suite against the condo association. And the Condo association should react against this lawsuit.
My concern is, that if the management company has been sued, why the condo association should react against it.
Could you advise if the management company is misleading us?
Submitted: 1 year ago via Cornell Legal Info Institute.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

The management company is correct, unless their management contract states something to the contrary or unless this is some personal act of the management company that caused the damages, which this does not seem to be the case. So yes, if there is damage from flooding, then this is a claim against the association as the association is liable for the repairs and maintenance ultimately.

However, if the management company is the only one named in the suit and not the association, the only way the association has to respond is if in the association is either named in the suit or if the management contract has an indemnification clause (where the association agrees to represent the management company in any suits).

You need to review the management contract for the indemnification clause. Also, even if you are not named and there is no indemnification clause (which there likely is) the management company can still drag you into the suit. So you need to turn all of this over to the association attorney to protect the association on this matter.