South-Western Legal Studies in Business

Condominium Association May Sue Builder for Alleged Defects in Condominiums
Description Appeals court held that under Oregon law a condominium association is a real party that has the capacity to sue the builder of the condominiums for alleged defects in construction that affected the common areas of the condominiums.
Topic Real and Personal Property
Key Words Condominiums; Association; Construction; Negligence
C A S E   S U M M A R Y
Facts The Association of Unit Owners of Bridgeview Condominiums sued all parties involved in the design and construction of the condominiums for numerous problems in the common areas. The trial court struck almost all of the claims that were made; the association appealed.
Decision

Reversed. A condominium association that is properly organized as a nonprofit corporation under state law has the capacity to sue or be sued. The association is a real party in interest in bringing a suit concerning alleged building defects since it is a “matter affecting the condominium.” The association may proceed in its suit against the developer and builder for breach of express and implied warranties concerning the condominium’s design and construction. Similarly, the association may sue the engineer in negligence for allegedly failing to comply with building codes and the standard of care that applies to a reasonable and competent civil engineer.

Citation Assn. of Unit Owners of Bridgeview Condos. v. Dunning, 69 P.3d 788 (Ct. App., Ore., 2003)

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