May2016

Developer’s Misrepresentations Relating to the Nature and

Quality of Views from High Rise Riverfront Condominium Results in Award of Treble Damages

By Martin Cabalar, Esq., Becker & Poliakoff

© iStockphoto.com

W ere you promised “breathtaking,” “unparal- leled waterfront views” or an “unbelievable panoramic range” of views of the Hudson River and Manhattan skyline from your condominium unit, only to have your view obstructed by a neighboring building constructed after your purchase? Depending on the circumstances surrounding the sale and marketing of your condominium, you may be entitled to damages for the diminution of the value of your unit resulting from the obstruction of your view, and possibly treble damages, attorneys’ fees and costs. This was the outcome in E telson v. South Shore Urban Renewal, LLC, 1 where the Appellate Division affirmed a jury’s finding that a developer deliber- ately misled purchasers in marketing materials when the developer had actual knowledge that views in the South Shore condominiums would not be unobstructed.

“...you may be entitled to damages for the diminution of the value of your unit resulting from the obstruction of your view...”

In Etelson, ten unit owners filed an action against the developer alleging violations of the New Jersey Consumer Fraud Act for, among other things, the loss of their view of the Manhattan skyline. The developer actively marketed South Shore condominiums for its unparalleled waterfront views, which were depicted on the developer’s website, display boards, sales brochures, billboards, handouts and videos. A painting of the condominium in the developer’s sales offices even depicted a smaller building being constructed in front of South Shore. In contrast to the marketing mate- rials, the developer was in fact actively seeking approval,

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