TheRealDeal.com "ILSA ruling a blow to 505 condo's buyers" What this means for you

Original Link: The Real Deal

By Amy Tennery

An Interstate Land Sales Full Disclosure Act case brought against the 505, a new 108-unit Hell's Kitchen condominium, has been dismissed in U.S. District Court, the developer announced today, marking a defeat for 35 buyers.

Fifty-three buyers filed ILSA claims, starting in June 2009. Subsequently, 18 of those either settled with the builder Parkview Developers or closed on their units at 505 West 47th Street.

But while a statement from Parkview said the developer intends to seek legal fees from the claimants, the buyers' attorney, Lawrence Weiner, said that his clients intend to appeal.

"We feel that the trial court got it wrong," said Weiner, who also has a pending ILSA appeal case at 5th on the Park in Harlem, which he filed in February.

Weiner said it's too early to tell how long the appeal will take.

Another buyers' attorney, Alan Carlin, was not immediately available for comment.

ILSA, a consumer protection law that requires developers of condos 99 units or larger to register with the U.S. Department of Housing and Urban Development, has been invoked in lawsuits directed at number New York City developments since the financial downturn, including One Hunters Point, the Edge and the Brompton.

Mati Weiderpass, a principal with Parkview, said that while he expected the 505 claimants' appeal, he believes the buyers' claims are unfounded.

"From my standpoint, the buyers got together and thought they'd use this as leverage to demand discount," Weiderpass said.

Evan Schieber, an attorney for the developer said in a written statement that Parkview believed the 505 ruling set a precedent.

"This ruling sends a clear message to those purchasers hoping to use ILSA as a way of escaping their contractual obligations that ILSA is not the panacea proclaimed by plaintiffs' lawyers," Schieber said.