§ 4311. Tort and contract liability.
(a) General rule.--Neither the association nor any proprietary lessee except the declarant is liable for that declarant's torts in connection with any part of the cooperative which that declarant has the responsibility to maintain. Otherwise, an action alleging a wrong done by the association must be brought against the association and not against any proprietary lessee. If the wrong occurred during any period of declarant control, the declarant who then controlled the association is liable to the association or to any proprietary lessee:
(1) For all tort losses suffered by the association or that proprietary lessee not covered by insurance.
(2) For all costs which the association would not have incurred but for a breach of contract or other wrongful act or omission.
(b) Claims after declarant control.--If a claim for a tort or breach of contract is made after the period of declarant control, the association shall have no right against the declarant under this section unless the association has given the declarant:
(1) Notice of the existence of such a claim promptly after the date on which one or more members of the executive board who are not designees of the declarant learns of the existence of such a claim.
(2) An opportunity to defend against such claim on behalf of the association but at the declarant's expense.
(c) Liability for litigation expenses.--Whenever the declarant is liable to the association under this section, the declarant is also liable for all litigation expenses, including reasonable attorney fees, incurred by the association.
(d) Tolling statute of limitations.--Any statute of limitation affecting the association's right of action under this section is tolled until the period of declarant control terminates.
(e) Proprietary lessee as party.--A proprietary lessee is not precluded from bringing an action contemplated by this section because he is a proprietary lessee or a member or officer of the association.
(f) Liens.--Liens resulting from judgments against the association are governed by section 4316 (relating to other liens affecting cooperative).
Cross References. Section 4311 is referred to in section 4102 of this title.
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