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In this episode of Legal Talk, Jennifer Stewart, a partner at the law firm Smith Buss and Jacobs, explains to Habitat's Emily Myers how critical the importance of understanding statutes of limitations for co-op and condo board directors is. The discussion reveals how timing can make or break a board's ability to pursue legal claims or defend against them.

Stewart emphasizes that proactive planning and early legal consultation are essential for protecting a building's interests. Through real-world examples, she illustrates how different types of claims have varying time limits – from one-year warranty claims to six-year breach of contract windows. She shares particularly sobering stories of boards who waited too long to act, leading to costly and complicated legal battles that could have been avoided with earlier intervention.

Key takeaways for board directors:

* Different claims have different deadlines: Construction defects might involve multiple time limits – one year for warranties, three years for professional malpractice, and six years for breach of contract claims.

* Corporate action challenges (like disputed elections or new house rules) have a surprisingly short four-month statute of limitations for shareholders or unit owners to file suit.

* While there are creative legal strategies to extend deadlines (like tolling or fraud claims), these approaches are more expensive and complex than acting within the original time frame.

* A quick consultation with counsel when issues first arise – even before deciding to pursue legal action – helps boards understand their timeline for making decisions and preserving their rights.

Stewart's practical advice boils down to a simple principle: when in doubt about potential claims, have a brief conversation with counsel early on. This small step can save boards significant headaches and legal expenses down the road.

The business of running a building is demanding work that requires making endless decisions — some that can quickly lead your board into a quagmire of legal difficulties. Legal Talk interviews New York's leading co-op/condo attorneys to find solutions, and get some guidance, on these challenges. For more co-op and condo insights, sign up to receive Habitat's free newsletters or become a Habitat subscriber today!