Harras Bloom & Archer LLP Blog

Monday, March 3, 2014

A Construction Dispute Leads to Severe Legal Sanctions

Developer Barred from Construction Work in New York State

New York has numerous laws devised to protect homebuyers from unscrupulous conduct on the part of real estate developers. When misconduct occurs, victims of fraud or poor workmanship can use the legal process to obtain the compensation they deserve, as illustrated in a case reported by loansafe.org, a consumer assistance organization.

In late 2013, state Attorney General Eric T. Schneiderman announced that condominium developers Joseph Scarpinito and Shiraz Sanjana were barred from “doing condo and securities-related work in New York," including offering condominiums and co-ops for sale. An earlier investigation found that the developers, who built an 8-story condominium building called The Mirada at 161 East 110th Street, had:

  • Failed to remedy construction defects which resulted in pervasive water leaks
  • Failed to obtain a permanent certificate of occupancy from the City’s Department of Buildings
  • Illegally retained $3.2 million of purchasers’ deposit monies
  • Illegally concealed their identities (with the assistance of their attorney)

In addition to being barred from construction and securities activities in New York, Scarpinito and Sanjana are required to pay $3.2 million to the 67 homebuyers at the Mirada.

As the results of this investigation demonstrate, parties in construction disputes can turn to civil court proceedings to obtain a fair outcome and compensation. If your firm is involved in construction dispute, either as a plaintiff or defendant, contact the New York and Long Island law firm of Harras Bloom & Archer LLP for experienced and knowledgeable legal help.

Our firm focuses on the areas of commercial real estate, business and commercial litigation and land use and zoning law. We represent key stakeholders, including owners, contractors, real estate developers, engineers, investors, lenders and trade associations, in disputes involving the construction of:

  • Condominium and coop developments and single-unit housing
  • Highways and roads
  • Hotel and resort facilities
  • Manufacturing, distribution and utility facilities
  • Office, retail and other commercial developments and real estate

Our objective is to protect each client’s bottom line. We accomplish this goal by combining a comprehensive understanding of real estate law, contract law and local municipal regulations with an attentive understanding of clients’ real estate project objectives and financial considerations. We are also highly experienced in weighing engineering and construction management factors and how they apply to individual cases.

Most often, clients’ interests are best served by skillful and well-prepared negotiations, or through structured mediation or arbitration. Our team, however, has litigated numerous cases involving businesses, the New York City Department of Buildings, local adjudicatory boards and other governmental entities. As our success stories webpage illustrates, we have achieved high-value resolutions for our clients in numerous construction disputes resolved through litigation. We handle cases involving property located throughout the Long Island and New York Metropolitan areas.

If you have questions regarding construction defect and other construction-related disputes in New York, contact Harras Bloom & Archer LLP. Call our Long Island office or New York City office at 631-498-5505 or 888-981-8659.

Harras Bloom & Archer LLP is known for providing sophisticated legal representation to sophisticated clients serving Nassau County, Suffolk County, Queens County, New York City and surrounding areas.

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