520 Fifth Avenue
Shoddy construction, chronically broken elevators, stratospheric monthly fees, delinquent tenants, and toilet flushes loud enough to keep one up at night are just some of the reasons why New Yorkers have filed lawsuits related to problems originating in their own buildings. But is litigation worth the risk? This article examines the benefits, pitfalls, and potential risks to one's property.
In this article:
Reasons to Litigate
In New York City, condo litigation is so common that dozens of law firms advertise it as an area of practice. There are also many reasons that condo owners resort to litigation. Some of the most common reasons include:
• Concerns about neglected repairs, including leaks and water damage
• Concerns about alterations
• Disputes with the board over bylaws, house rules, approval process, or proprietary leases.
• Chronic conflicts with neighbors regarding noise, smoke, or other nuisances
• Disputes over the use or maintenance of common areas
• Disputes over common charges and fees
• Disputes over subleases
Although litigation cases often pit individual condo owners against condo boards or developers, these aren't the only types of litigation cases. Condo boards also frequently litigate against developers (e.g., when buildings present chronic problems resulting from construction or design flaws). Individual owners or boards also occasionally litigate against other parties, including neighbors or tenants.
Recent High-Profile Cases
One recent example of condo litigation drew attention because of the bold-faced names attached to it. Boxer turned real estate investor Floyd Mayweather Jr. rented a five-bedroom apartment at Baccarat Hotel & Residences for $100K/month starting in December 2024; however, he allegedly stopped paying rent in July 2025. The owners put some of his security deposit toward back rent and negotiated a settlement requiring him to repay back rent and other fees by December 2, 2025, but Mr. Mayweather has reportedly only paid back one month of rent. The owners have since been unable to contact him and filed the lawsuit in February 2025 with plans to put the apartment back on the sales market later this spring.
432 Park Avenue (DBOX for Macklowe Properties)
One of the most widely publicized condo litigation cases in recent years centers around the ongoing building defects at 432 Park Avenue, the supertall (1,396-foot) skyscraper located at the foot of Central Park. The lawsuit, which has pitted 432 Park Avenue’s condo board against the building’s developers, focuses on a litany of complaints ranging from stuck elevators to flooding to unwelcome noises and vibrations. Although the condo’s original purchase agreements clearly stated the developer was obliged to correct any defects, as the court filing details, by the time residents of 432 Park Avenue took legal action in 2021, it had become abundantly clear that the Sponsor had no intention of addressing the building’s defects.
More recently, owners at 432 Park Avenue sued again in October 2025, alleging that the building's developers hid structural defects attributed to the "experimental" bright white concrete facade that seems to have been chosen for aesthetics over substance. About eleven years after completion, there are cracks in the facade characteristic of older buildings, and the cracks have caused flooding, corrosion of steel in the tower's concrete columns, and chunks of concrete falling. Developer CIM Group and architect of record SLCE Architects deny the claims, but the fact remains that the building could become uninhabitable, dangerous to pedestrians, or both if these problems aren't addressed.
Upper East Side looking south with 432 Park and 520 Park in view
A short distance from 432 Park Avenue, the buyers of a penthouse at 520 Park Avenue have sued the building's developers, Zeckendorf Development, alleging that they deliberately withheld news that would have affected their decision to buy in the building. At the time their all-cash, $80 million penthouse sale closed, Extell Development had only closed on one office tower for its planned project at 655 Madison Avenue nearby. Since then, Extell's assemblage grew from one office building to four additional sites, allowing them to construct a larger tower that threatens the views that made the penthouse such a prize.
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The penthouse's owners argue that Zeckendorf Development must have been privy to industry information like Extell's negotiations, and deliberately withheld the news from them. They filed a lawsuit in March 2025, seeking their money back, damages, and for the developers to cover their legal fees. However, a lawyer for Zeckendorf Development described the case to Crain's New York Business as "buyer’s remorse masquerading as a complaint."
That case is still pending, but 655 Madison Avenue is expected to grow even bigger since then. Extell was only planning a 37-story building at the time of the lawsuit, but requested a rezoning for a 74-story tower in July 2025. Their purchase of approximately 135,000 square feet of development rights from the nearby, landmarked Metropolitan Club in February 2026 makes such a thing more likely.
West-facing views from 520 Park Avenue, which will be impacted by 655 Madison Avenue and other nearby tall towers
Carnegie House (CityRealty)
Lawsuits like these aren't limited to uber-luxury buildings. Carnegie House, a modest white brick building located at 100 West 57th Street (on the corner of Sixth Avenue), was completed in 1963. Since then, the land beneath the building changed hands in 2014, and the new owners proposed raising the annual rent based on soaring property values on Billionaires' Row. This could translate to dramatic spikes in monthly fees, and the co-op challenged it. But a judge upheld the rent hike in January 2026, and residents are worried about losing their homes. A $100K sale was recorded in the building amidst all this.
The recent new development condo Pierhouse which sits within Brooklyn Bridge Park (Photo credit: Mark Wickens)
Nor, indeed, are litigation cases limited to Manhattan. Another case that has garnered headlines concerns ongoing noise complaints at Pierhouse at Brooklyn Bridge Park. In this case, the plaintiff is an individual owner and the defendant isn't the condo board or developer but rather the Brooklyn Bridge Park Cooperation, which owns the land on which this private residence is located (the development was built to help pay for the park’s maintenance).
In the court filing, the residents in question allege that the Brooklyn Bridge Park Corporation has subjected them to “incessant loud and disturbing noise emitted from the public lavatory (the “Lavatory”), park storage room (the “Storage Room”), and metal gate at the entrance to the Lavatory and Storage Room (the “Gate”), all located directly below their Unit.” In addition to “badly degrading their sleep and quality of life,” the Plaintiffs maintain that the noise has resulted in their "loss of the use and enjoyment of their apartment.” While the City initially countered that the noise was not as bad as alleged, as of September 2023, the City was exploring potential “acoustic renovations.”
In the court filing, the residents in question allege that the Brooklyn Bridge Park Corporation has subjected them to “incessant loud and disturbing noise emitted from the public lavatory (the “Lavatory”), park storage room (the “Storage Room”), and metal gate at the entrance to the Lavatory and Storage Room (the “Gate”), all located directly below their Unit.” In addition to “badly degrading their sleep and quality of life,” the Plaintiffs maintain that the noise has resulted in their "loss of the use and enjoyment of their apartment.” While the City initially countered that the noise was not as bad as alleged, as of September 2023, the City was exploring potential “acoustic renovations.”
Litigation Doesn’t Necessarily Lower the Value of Units
Although one might assume that litigation is always risky for owners as it necessarily lowers the value of one's unit, this isn’t necessarily true.
As an example, consider the price history at 432 Park Avenue. Although CityRealty’s historical market data points to a temporary decrease in values in 2021, which is around the time that the condo board took action against the developer, the values bounced back up by early 2022, with all units selling at or above the asking price. But more recently, the price per square foot of condos sold in the building was $4,097 per square foot in 2025, down from $5,949 at its peak in 2018. It's true that the building's structural woes came to light last year, but so did a wider pool of luxury listings on Billionaires' Row and elsewhere in the city.
Full-floor homes at 520 Park Avenue continue to command high prices, but the sellers of a floor-through four-bedroom took a $4 million loss in August 2025. However, it is unclear whether this can be attributed to the lawsuit or the fact that in the years since they bought it in June 2019, a wider pool of luxury condos on the Upper East Side has attracted attention and buyers. Similarly, there doesn’t seem to be any clear correlation between the lawsuit filed by residents of Pierhouse in Brooklyn in September 2020 and subsequent price fluctuations.
The bottom line is that while litigation is unlikely to increase the value of a condo (unless, of course, it involves a famous resident and brings increased prestige to the property), there is also no guarantee litigation will decrease valuations either.
However, it's important to recognize that litigation does carry potential risks. A protracted and costly legal dispute can deplete the condo's financial reserves, leading to increased fees for residents. This, in turn, can make buying into the building less appealing and may eventually lead to a decline in property value. Furthermore, extended litigation can also make lenders more cautious about financing units in the building. In most cases, unless the litigation is exceptionally high-profile, costly, and prolonged, its impact on the condo's value tends to be minimal. This is why many New Yorkers are willing to take the risk of pursuing legal action against their condo board, developer, or neighbors when faced with problems that lack straightforward solutions.
However, it's important to recognize that litigation does carry potential risks. A protracted and costly legal dispute can deplete the condo's financial reserves, leading to increased fees for residents. This, in turn, can make buying into the building less appealing and may eventually lead to a decline in property value. Furthermore, extended litigation can also make lenders more cautious about financing units in the building. In most cases, unless the litigation is exceptionally high-profile, costly, and prolonged, its impact on the condo's value tends to be minimal. This is why many New Yorkers are willing to take the risk of pursuing legal action against their condo board, developer, or neighbors when faced with problems that lack straightforward solutions.
Featured Listings
High-floor home away from the bathroom
Pierhouse at Brooklyn Bridge Park, #N805
$2,850,000 (-3.4%)
Brooklyn Heights | Condominium | 1 Bedroom, 1.5 Baths | 1,470 ft2
Pierhouse at Brooklyn Bridge Park, #N805 (Douglas Elliman Real Estate)
Designer duplex with no connection to Floyd Mayweather Jr.
Baccarat Hotel & Residences, #18A
$10,000,000 (-18.4%)
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High-floor home with views from all four exposures
520 Park Avenue, #22
$20,750,000
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520 Park Avenue, #22 (Corcoran Group)
Asking prices for some listings at 432 Park Avenue have seen double-digit reductions, but this may be partially due to increased competition on Billionaires' Row and elsewhere.
432 Park Avenue, #69
$52,000,000 (-5.5%)
Midtown East | Condominium | 5 Bedrooms, 6+ Baths | 8,040 ft2
432 Park Avenue, #69 (Serhant)
Would you like to tour any of these properties?
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Or call us at (212) 755-5544
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Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.
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