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FILED: NEW YORK COUNTY CLERK 01/22/2013

NYSCEF DOC. NO. 1

INDEX NO. 150612/2013 RECEIVED NYSCEF: 01/22/2013

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK -------------------------------------------------------------------X YIN HOU, individually and on behalf of all other similarly situated Plaintiffs, Plaintiffs, INDEX NO. _______________ v. OCEAN PRIME, LLC, OCEAN PARTNERS LLC, OCEAN PARTNERS SPE CORP., RESIDENTIAL MANAGEMENT GROUP, LLC, d/b/a DOUGLAS ELLIMAN PROPERTY MANAGEMENT, and OCEAN CAR PARK, LLC, d/b/a GGMC Parking, LLC, Defendants. -------------------------------------------------------------------X TO: THE ABOVE NAMED DEFENDANTS: YOU ARE HEREBY SUMMONED to answer the Complaint in this action and to serve a copy of your Answer, or, if the Complaint is not served with this Summons, to serve a notice of appearance, on the plaintiffs attorney within 20 days after service of this Summons, exclusive of the day of service, where service is made by delivery upon you personally within the state, or within 30 days after completion of service where service is made in any other manner. In case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the Complaint. The basis of the venue is the Defendants principal places of business and the location in which this cause of action arose. Dated: January 22, 2013 New York, New York SUMMONS

NAPOLI, BERN, RIPKA & SHKOLNIK, LLP

350 Fifth Avenue, Suite 7413 New York, New York 10118 (212) 267-3700 (Phone) (212) 587-0031 (Fax) -andIMBESI CHRISTENSEN

450 Seventh Avenue, Suite 3002 New York, New York 10123 (212) 736-0007 (Phone) (212) 658-9177 (Fax) Attorneys for Plaintiffs

Defendants Addresses: Ocean Prime, LLC 1 West Street New York, New York 10004 Ocean Partners, LLC c/o The Moinian Group 530 Fifth Avenue, Suite 1800 New York, New York 10036 Ocean Partners SPE Corp. c/o The Moinian Group 530 Fifth Avenue, Suite 1800 New York, New York 10036 Residential Management Group, LLC d/b/a Douglas Elliman Property Management Attn: Brian K. Ziegler 90 Merrick Avenue East Meadow, New York 11554 Ocean Car Park, LLC d/b/a/ GGMC Parking, LLC 1651 Third Avenue New York, New York 10128

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK -------------------------------------------------------------------X YIN HOU, individually and on behalf of all other similarly situated Plaintiffs, Plaintiffs,

INDEX NO. ________________

CLASS ACTION COMPLAINT v. Jury Trial Demanded OCEAN PRIME, LLC, OCEAN PARTNERS LLC, OCEAN PARTNERS SPE CORP., RESIDENTIAL MANAGEMENT GROUP, LLC, d/b/a DOUGLAS ELLIMAN PROPERTY MANAGEMENT, and OCEAN CAR PARK, LLC, d/b/a GGMC Parking, LLC, Defendants. -------------------------------------------------------------------X Plaintiff Yin Hou, by and through his attorneys, Napoli Bern Ripka Shkolnik, LLP, and Imbesi Christensen, brings this Class Action Complaint ("Complaint") against the Defendants Ocean Prime, LLC (Ocean), Ocean Partners, LLC (Partners), Ocean Partners SPE Corp. (Partners SPE), Residential Management Group, LLC, d/b/a Douglas Elliman Property Management (DEPM), and Ocean Car Park, LLC, d/b/a/ GGMC Parking, LLC (GGMC Parking), (collectively Defendants), and on behalf of himself and all other similarly situated residential and commercial tenants (the Class Members), of 1 West Street, New York, New York 10004 (1 West Street or the Premises), and alleges upon information and belief as follows: NATURE OF THE ACTION 1. Plaintiffs seek damages for their claims arising out of Defendants failure to

exercise due care to adequately secure, protect or otherwise care for the real property located at 1 West Street subsequent to multiple warnings issued by the National Hurricane Center (NHC)
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and by New York City government officials for residents of lower Manhattan prior to Superstorm Sandy (also referred to as the Storm or Sandy), and for their negligence relating to their failure to mitigate damages before, during and subsequent to the Storm. JURISDICTION AND VENUE 2. This Court has personal jurisdiction over the corporate Defendants pursuant to

C.P.L.R. 301 because the Defendants are New York limited liability companies and registered foreign companies that conduct business in New York County. 3. Venue is proper in the Supreme Court of the State of New York, New York

County pursuant to C.P.L.R. 503 as the causes of action arose in New York County. PARTIES A. 4. Plaintiffs Plaintiff Yin Hou is a citizen of the State of New York and resides in New York

County and is an individual residing in the building located at 1 West Street, New York, New York 10004. 5. The class consists of all residential and commercial tenants of 1 West Street on

October 29, 2012. B. 6. Defendants Defendant Ocean Prime, LLC is a foreign limited liability company registered to

conduct business in the State of New York, with its principal place of business located at 1 West Street, New York, New York 10004. 7. Defendant Ocean Partners, LLC is a domestic limited liability company formed

and existing under the laws of the State of New York, with its principal place of business located

at 530 Fifth Avenue, New York, New York 10036. Ocean Partners, LLC, is the Sole Member of Ocean Prime, LLC. 8. Defendant Ocean Partners SPE Corp. is a Delaware company registered to

conduct business in the State of New York, with its principal place of business located at 1 West Street, New York, New York 10004. Ocean Partners SPE Corp. is the Manager of Ocean Prime, LLC. 9. Defendant Residential Management Group, LLC, d/b/a Douglas Elliman Property

Management is a foreign limited liability company formed and authorized to conduct business in the State of New York. At all relevant times, DEPM was retained by Defendants Ocean, Partners and Partners SPE to act as the Managing Agent for the property located at 1 West Street, New York, New York 10004. 10. Defendant Ocean Car Park, LLC, d/b/a/ GGMC Parking, LLC is a domestic

limited liability company formed and existing under the laws of the State of New York, with its principal place of business located at 1651 Third Avenue, New York, New York 10128. STATEMENT OF FACTS A. 11. Superstorm Sandy On October 22, 2012, the NHC issued its first forecast and public advisories

regarding Superstorm Sandy. Thereafter, NHC issued multiple advisories on a daily basis regarding the Storms strength and its predicted path. 12. By Thursday, October 25, 2012, the NHC warned that the entire eastern coast of

the United States should be closely monitoring the progress of Superstorm Sandy. 13. On Saturday, October 27, 2012, the NHC and National Weather Service (NWS)

began predicting levels of storm surges in New York and New Jersey as high as eleven (11) feet.
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National weather forecasters repeatedly warned New York and New Jersey residents that maximum precautionary measures should be taken. 14. On Sunday, October 28, 2012, at or about 11:00 a.m., Mayor Bloomberg ordered

mandatory evacuation of Zone A. Zone A is an area designated by New York City officials as low lying areas that are prone to flooding within the five boroughs. In Manhattan, Zone A includes Battery Park City and sections of the West Side waterfront, Lower East Side, East Village, and in the financial district in Manhattan. 15. At the mandatory evacuation press conference, Mayor Bloomberg warned

property owners, businesses and residents, especially those in lower Manhattan, that tides overnight tonight will lead to coastal flooding in Zone A.We anticipate the surge will hit a lot of low lying areas, and the possibility of flooding will continue into Tuesday afternoon. 16. At this time, New York residents were also told that all subways, buses and trains

would be shut down at 7:00 p.m., on October 28, 2012. 17. On or about October 29, 2012 the Consolidated Edison Company of New York,

Inc., (Con Ed) shut off power to property located in lower Manhattan including power to 1 West Street. 18. Sandy made landfall in lower Manhattan on Monday, October 29, 2012, at

approximately 7:00 PM. B. 19. 1 West Street There are approximately five hundred residential apartments and fifteen floors of

commercial space located at 1 West Street. The Premises is capable of accommodating over two thousand commercial employees/individuals. A parking garage is also located at the Premises. 20. 21. 1 West Street is located in Zone A. At all relevant times, Defendant Ocean was the owner of 1 West Street.
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22.

At all relevant times, Defendants were responsible for preparing for any potential

damage at the Premises caused by Sandy and were responsible for maintaining the Premises in a safe and habitable condition following the Storm. 23. Sometime after the storm surges caused water to overflow onto the streets of

lower Manhattan on Monday night, October 29, 2012, water entered 1 West Street's basement and parking garage. 24. Between 7:00 and 8:00 p.m., Class Members observed that some basement doors

and windows were left partially open, and witnessed flood waters entering the Premises through the basement windows and doors left open and/or not properly secured. 25. Defendants failed to take necessary precautions with respect to the basement

doors and windows. Defendants failed to place sandbags, or any other restrictive barriers in front of the doors or windows of the Premises. Defendants failure to take any rudimentary measures to protect the buildings doors and low-lying windows allowed flood water to enter the building. 26. Defendants also failed to take necessary precautions with respect to the parking

garage entrance. Defendants failed to place sandbags, or any other restrictive barriers in front of the entrance to the parking garage, and they failed to take any other effective precautions with respect to the garage entrance and the perimeter of the property. As a result, water freely accessed the garage and basement of 1 West Street. Vehicles in the parking garage became submerged in the flood water, causing oil and gasoline from the vehicles to enter and permeate the flood water. 27. Just days before Sandy, 1 West Street received a delivery of twenty thousand

gallons of heating oil. The oil began leaking because Defendants did not properly secure the boiler and oil tank.

28.

During the night of October 29, 2012, Class Members observed a one hundred

yard oil slick flowing out of the garage. 29. Had Defendants properly secured the Premises doors and windows the Premises

would not have been flooded. 30. Given the lack of force generated by the storm surge water, the only portions of

the building requiring barriers were the entrances to the building. 31. Defendants failed to construct adequate barriers prior to the storm. Specifically,

the Defendants failed to construct barriers in front of the building's perimeter, including the parking garage entrance, the building entrances and ground floor windows. As a result of the Defendants negligence, the building was rendered uninhabitable due to damage caused by flooding. 32. Given the ample amount of warning, Defendants knew, or should have known,

that water could access the perimeter of the building and cause substantial damage. 33. The flood water and oil from the boiler caused significant damage to the

mechanical and electrical systems for the building. The flood waters and oil posed a serious fire hazard. Both the New York City Fire Department and the New York State Department of Environmental Protection ("DEP") had to assist in removing water and oil from the Premises. 34. Additionally, the mixture of oil and flood water caused a toxic environment that

was reported to the DOB. DOB officials subsequently designated 1 West Street as "unsafe" and no one was permitted to enter. Several days later, the designation was changed to "restricted use." 35. As a result of the water containing oil and gasoline, diesel fuel fumes spread

throughout the building. The fumes affected the air quality and permeated the entire building, including apartment floors, walls, ceilings, furniture and clothing located on the Premises.
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36.

1 West Street was uninhabitable and Class Members were forced to make

alternative living and commercial office arrangements, without the use of their personal property because of the damage to operational systems, all of which were underground, including heat, hot water, electric, ventilation, water filtration and sprinkler systems. 37. Defendants were negligent in their: (1) failure to construct adequate water

barriers around the building's perimeter; (2) failure to lock or secure doors and windows before the storm; (3) failure to lock or secure doors and windows during the storm which allowed the flow of additional water after it started entering; (4) failure to secure doors leading to the basement; and (5) filling of buildings gas tanks prior to the storm. These negligent acts, individually and together, caused the damage to the mechanical equipment located in the basement which ultimately rendered the building uninhabitable. 38. The resulting damage was foreseeable and could have been prevented by the

Defendants. Actions as simple as locking ground level windows, boarding up windows and doors and/or placing sandbags around the doors and windows could have prevented the subject damages. C. 1 West Street Post Superstorm Sandy 1. Defendants' Inability to Communicate a Reasonable Re-Occupancy Date Caused Class Members Additional Damages 39. Following the storm, Defendants consistently provided inaccurate information

and/or conflicting information to Class Members about the return to 1 West Street that prevented the Class Members ability to make temporary housing and commercial office arrangements. 40. On or about October 30, 2012, Defendants told Class Members that city officials

prohibited anyone from staying in the building because of the safety concerns, however, Class Members could return to collect pets and personal belongings. At that time, Defendants told
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Class Members that they were "working as quickly as possible" to return Class Members to the building. 41. On or about November 4, 2012, Defendants told Class Members that water was

still being pumped from the flooded basement and garage, but that it was "a slow process because the water has to be separated from the oil" which requires the DOB and the DEP to perform a safety inspection of the water removal process every 10-15 minutes. 42. On or about November 5, 2012, Defendants provided Class Members with a

"question and answer" sheet. In this memorandum, despite the fact that the apartments and commercial offices were not habitable, Defendants told Class Members that "the rent is due on the 1st." However, Defendants stated that they would "waive the late fee for those unable to get payments in within the usual grace period." 43. On or about November 7, 2012, Defendants informed Class Members that they

were unable to complete the promises set forth in their original time line and that the "best estimate that we can give you, is that it appears that it could be as much as two more weeks before we can return residents to their homes." Defendants conditioned this statement by telling Class Members that the time estimate "could, and probably will change, in either direction" because "things change on a daily basis." 44. Thereafter, Defendants' email communications to Class Members temporarily

halted and Class Members had no means to obtain accurate information about when they could return. Many Class Members did not obtain new temporary accommodations because they relied on Defendants' initial representations and believed that there would only be displaced for two weeks. 45. Sometime during the week of November 19, 2012, Defendants told Class

Members that the building would re-open on December 1, 2012. Thereafter, on November 26,
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2012, Class Members were told they could return on November 27, 2012. Later that day, Class Members were told that could not return until November 28, 2012. On November 28, 2012, at 3:00 p.m., Class Members were told they could not return until November 30, 20120, at 5:00 p.m. 46. Finally, on November 30, 2012, at 4:58 p.m., Defendants told Class Members that

they could return to the residential apartments at 1 West Street late that afternoon. 47. At that time, and continuing through the present, the commercial tenants have

been unable to return to the building and operate their business from their own office space. D. 48. Re-occupancy conditions at 1 West Street Pursuant to New York law, Defendants were not permitted to charge rent for any

day that the building was not habitable. Upon their return to 1 West Street on November 30, 2012, Class Members were told that their November rent payment would be credited to the month of December. Defendants did not charge Class Members rent for the first two days of December. 49. On November 30, 2012, Defendants' emailed Residents and told them that if they

return to their apartments, they must sign a written statement that expressly states that the Resident "will remain a tenant at 1 West" and not break their current lease. For those individuals who refused to sign, Defendants required that all personal property be moved out the following day and apartment keys returned to Defendants immediately, even before the move out. 50. Defendants ultimatum was especially difficult for Class Members who had

already provided written notice of a lease termination. By entering 1 West Street on November 30, 2012, and refusing to sign, Class Members had less than twenty-four hours to physically move out.

51.

Class Members felt pressure to sign the written statement and therefore relinquish

their prior notice to terminate their leases. Class Members had not been provided time to prepare for their moves because this was the first notice of such a policy. 52. Defendants informed Class Members who had previously given notice of lease

termination that "If you decide you want to stay, we would be more than happy for you to do so." 53. When one resident who had given lease termination notice two (2) weeks prior to

November 30, 2012, objected to the demand for the return of her keys and move out in twentyfour (24) hours, she received an email from Defendants, which set forth: "[t]echnically you terminated your lease back to the date of casualty which [sic] in October 28th. We deem[sic] surrender of your apartment letter and keys." a. Uninhabitable Conditions at 1 West Street 54. Although Defendants declared that 1 West Street was habitable on November 30,

2012, the following conditions were present on that date and continue through the present: a. Frequent and lengthy power outages, including outages for five (5) hours; b. Persistent loud noise and smell of diesel fuel caused by the generator(s) that permeates the building; c. The threat of fire from the generators, and two (2) fires caused by the generators; d. Limited elevator functioning, including use of only two elevators instead of six elevators; e. Frequent and repeated instances of Class Members being trapped in malfunctioning elevators with non-working call and fire buttons in the elevators; f. Frequent and repeated instances of Class Members experiencing a free fall and dropping multiple floors in the malfunctioning elevators;
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g. Lack of water safe for consumption; h. Brown water and water filled with sediment; i. Low water pressure and lack of hot water; j. Loss of heat during power outages; k. Food spoliation during power outages; and l. Diminished security during the power outages.

55.

Since the Class Members returned to 1 West Street, the building has been

powered by two generators. The diesel fumes from these generators are significant and permeating throughout 1 West Street. Class Members are concerned for their safety. 56. 1 West Streets elevator operation has been sporadic, unsafe and unreliable

because the building is now powered by generators. At all relevant times, of the six (6) elevators at 1 West Street, only two or three elevators have been working. During the first week of December, the New York Fire Department had to rescue tenants trapped in an elevator. 57. The elevator safety concerns have caused Class Members to file multiple

complaints to the DOB. One complaint reported that on December 4, 2012, a Resident had experienced a "free fall" in a 1 West Street elevator and that this was the second time that he had experienced a "free fall." 58. Many Class Members have been fearful to use the elevators since their return to

the building and continue to fear an accident in the elevator. The New York City Fire Department has responded multiple times to the Premises. 59. During the power outages, the entrances and doors to 1 West Street are unlocked,

allowing anyone to enter the building, and reducing Class Members safety. Further, during the outages Class Members had to navigate the dark stairwells with flashlights.
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60.

Class Members water is regularly brown and contains sediment and is not safe to

consume. The generators power the water pumps for 1 West Street and those pumps have also failed. When the water pumps fail, sediment builds up in the water tank causing the water to appear brown, cloudy with pieces of sediment floating in the water. Class Members are reluctant to drink, bathe or use the brown water for cooking. 61. Defendants did not warn Class Members in advance that the water pumps would

be turned off for repairs. Class Members have been unable to receive adequate information from Defendants about the water quality and assurances that it is safe to drink and use. 62. Numerous Class Members complained to Defendants about the conditions, and

expressed concerns regarding the continued restricted use posting by DOB, the excessive loud noise and smell from the generator, the quality of the air and water and safety of the elevators. 63. To date, over seven (7) weeks following re-occupancy, most, if not all, of the

same conditions at 1 West Street remain. 64. To date, there have been two fires, both on commercial floors in the building.

Defendants failed to notify Class Members about the fire on or about December 26, 2012, until thirty-one (31) hours after the fire. 65. Despite multiple attempts from Class Members to obtain information about

repairs, Defendants continue to fail to provide Class Members with accurate or definitive answers regarding the status of repairs and when the building will be fully functional. E. 66. Thirty (30) Day Lease Termination Provision Pursuant to the terms of the 1 West Street lease agreement with Class Members,

should the building remain uninhabitable for a period of thirty (30) days, Class Members may give notice of lease termination and Defendants must return security deposits and pro-rated rents for the month in which the casualty occurred.
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67.

The lease provision reads in relevant part: 21. Fire or Casualty: (D) If the Apartment is completely unusable because of fire, accident or other casualty and it is not repaired in 30 days, You may give Owner written notice that You end the Lease. If You give that notice, this Lease is considered ended on the day that the fire, accident or casualty occurred. Owner will refund Your security deposit and the prorate portion of rents paid for the month in which the casualty happened.

68.

Some Class Members expressed concern to Defendants that 1 West Street was re-

opened to Class Members prematurely and before the building was in fact, safely habitable, for the purpose of avoiding the terms of 21 (D) of the lease. Defendants have not responded to Class Members concerns. 69. Defendants have failed to provide Class Members with documentation that the

water quality has been inspected, and is safe for consumption. 70. The continued use of generators to power the building has caused, and is

continuing to cause, Plaintiffs and Class Members to suffer additional damages. CLASS ALLEGATIONS 71. Plaintiffs bring this Class action pursuant to CPLR 901, on behalf of themselves

and all other similarly situated individuals who were residential and commercial tenants at 1 West Street (i.e. the Premises) from October 29, 2012 to the present. 72. Subject to additional information obtained through further investigation and

discovery, the foregoing definition of the Class may be expanded or narrowed by amendment or amended complaint. Excluded from the Class are Defendants and its affiliates, parents, subsidiaries, employees, officers, agents, and directors; government entities or agencies, its affiliates, employees, officers, agents, and directors in their governmental capacities; any judicial

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officer presiding over this matter and the members of their immediate families and judicial staff; and class counsel. 73. This action is properly maintainable as a class action. As provided in CPLR

901(a)(1), the proposed Class is so numerous that joinder of all members, whether otherwise required or permitted, is impracticable. 74. As provided in CPLR 901(a)(2), there are questions of law or fact common to

the Class which predominate over any questions affecting only individual members. Specifically, the common questions of fact or law include whether Defendants were: a. negligent with respect to its duty to maintain the property in a reasonably safe condition given Defendants actual and/or constructive notice of the potential flooding from Sandy; b. negligent in their evaluation and assessment of potential flood damage exposure given the historical information on the location, including past use, zoning designation, flood plain designation and events of past flooding, including but not limited to Hurricane Irene; c. negligent with respect to the design and construction of the premises based upon the assessment of potential flood exposure; d. negligent in their implementation, if any, of flood preventive measures throughout the premises prior to Sandy on October 29, 2012; e. negligent with respect to measures taken, if any, to adequately secure the premises during the four to five days of actual and/or constructive notice of the impending
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storm from the National Hurricane Center and city officials, and following the approximate thirty-six hour period subsequent to the Zone A mandatory evacuation order; f. negligent in their failure to use sandbags or other flooding barriers across the entrance to the building and the perimeter of the properties; g. negligent in their failure to properly secure doors and ground level windows prior to Sandy; h. negligent in their failure to properly secure doors and ground level windows as soon as water began entering the building through the unsecured and/or open doors and flooding the lobby; i. negligent in their failure to properly secure and/or leaving completely open, doors and entrances leading to the basement prior to Sandy; j. negligent in their failure to create an effective storm preparedness plan, and/or revise the plan subsequent to Hurricane Irene or in the four to five days following official warnings; k. negligent in their failure to properly secure the basement of the building and the operational, mechanical and electrical equipment located on the premises; and l. negligent in their failure to mitigate damages immediately after the Storm; and m. negligent in their determination that 1 West Street was habitable on November 30, 2012, despite the fact that the following conditions were present on that date and continue through the present:
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i. Frequent and lengthy power outages, including outages for five (5) hours; ii. Persistent loud noise and smell of diesel fuel caused by the generator(s) that permeates the building; iii. The threat of fire from the generators, and two (2) fires caused by the generators; iv. Limited elevator functioning, including use of only two elevators instead of six elevators; v. Frequent and repeated instances of Class Members being trapped in malfunctioning elevators with non-working call and fire buttons in the elevators; vi. Frequent and repeated instances of Class Members experiencing a free fall and dropping multiple floors in the malfunctioning elevators; vii. Lack of water safe for consumption; viii. Brown water and water filled with sediment; ix. Low water pressure and lack of hot water; x. Loss of heat during power outages; xi. Food spoliation during power outages; and xii. Diminished security during the power outages. 75. As provided in CPLR 901(a)(3), the proposed lead Plaintiffs representative

claims are typical of those of the proposed Class because the proposed lead Plaintiffs claims are based upon the same legal theories. The proposed representative partys grievances, like the proposed Class grievances, all arise out of the same business practices and course of conduct of

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Defendants. Further, Plaintiffs damages arise out of a pattern of nearly identical and repetitive business practices conducted by the Defendants. 76. As provided by CPLR 901(a)(4), the representative Plaintiff can adequately

represent the Class. No conflict of interest exists between the representatives and the Class Members or with respect to the claims for relief requested. 77. The representatives and their chosen attorneys are familiar with the subject matter

of the lawsuit and have full knowledge of the allegations contained in this complaint so as to be able to assist in its prosecution. In addition, the representatives attorneys are competent in the relevant areas of the law and have sufficient experience to vigorously represent the Class. Furthermore, the resources available to counsel ensure that the litigation will not be hampered by a lack of financial capacity. Plaintiffs attorneys have sufficient financial resources and are willing to absorb the costs of the litigation. 78. As provided by CPLR 901(a)(5), a class action is superior to any other available

methods for adjudicating this controversy. The proposed class action is the surest way to fairly and expeditiously compensate so large a number of injured persons; to keep the courts from becoming paralyzed by hundreds, perhaps thousands of repetitive cases, and to reduce transaction costs so that the injured Class can obtain the most compensation possible, class treatment presents a superior mechanism for fairly resolving similar issues and claims without repetitious and wasteful litigation.

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COUNT I Negligence Prior to Sandys Landfall (As against all Defendants) 79. Plaintiffs repeat and reallege all preceding paragraphs of this Complaint, as if

fully set forth herein. 80. At all relevant times herein, Defendants, the owners of 1 West Street, their agents

and employees, owed a duty of care to the Class Members of 1 West Street to maintain the property in a reasonably safe condition. The owners of 1 West Street, their agents and employees, owed a duty of care to the Class Members of 1 West Street to reasonably and adequately secure the premises from damaging flooding. 81. The owners of 1 West Street, their agents and employees, were on actual and/or

constructive notice of the severity of Sandy four to five days before the storm surges impacted lower Manhattan. 82. Defendants, and their agents and employees, had the opportunity to inspect

existing flood safeguards, obtain additional methods to adequately secure the perimeter of 1 West Street, and/or take reasonable precautions and/or exercise reasonable care such that the excessive damage from Sandy at 1 West Street could have been avoided because they were on notice that the storms impending landfall. 83. Through the fault and the negligence of the owners of 1 West Street, their agents

and employees, Defendants breached their duty to maintain the property in a reasonably safe condition. Through the fault and negligence of the owners, storm surge water flowed unhindered into 1 West Street, and into the connecting parking garage, causing extensive damage. 84. As a direct and proximate result of the owners negligence, gross negligence

and/or failures to act, the class and subclass members suffered personal property damages and
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other special damages including, but not limited to, the following: (1) loss of personal property; (2) diminution of personal property value; (3) loss of income; (4) costs of relocation; (5) loss of business opportunities and business interruption; and (6) evacuation expenses. COUNT II Negligence after Sandys Landfall (As against all Defendants) 85. Plaintiffs repeat and reallege all preceding paragraphs of this Complaint, as if

fully set forth herein. 86. At all relevant times herein, the owners of 1 West Street, their agents and

employees, owed a duty of care to the Class Members of 1 West Street to maintain the property in a reasonably safe condition. The owners of 1 West Street, their agents and employees, owed a duty of care to the Class Members of 1 West Street to reasonably and adequately mitigate the damages caused by Sandy and properly repair the damages. Through the fault and the negligence of the owners of 1 West Street, their agents and employees, Defendants breached their duty to mitigate the damages caused by flooding and restore the real property to a reasonably safe condition. 87. Defendants have failed to reasonably and adequately restore the real property to a

reasonably safe condition causing Class Members to experience on a regular basis: (1) Frequent and lengthy power outages, including outages for 16 hours; (2) Persistent noise and smell of diesel fuel caused by the generator that permeates the building; (3) Limited elevator functioning, including use of only one elevator instead of five elevators; (4) Frequent and repeated instances of Class Members being trapped in malfunctioning elevators; (5) Brown water and water filled with sediment that is not fit for consumption; (6) Low water pressure and lack of hot water; (7) Loss of heat during power outages; (8) Diminished security and safety during power outages; (9)
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Food spoliation during power outages; and (10) Loss of intercom system at all times, allowing visitors to enter the building and have access to all floors unannounced. 88. As a direct and proximate result of the owners negligence, gross negligence

and/or failures to act, the class and subclass members suffered personal property damages and other special damages including, but not limited to, the following: (1) loss of personal property; (2) diminution of personal property value; (3) loss of income; (4) costs of relocation; (5) loss of business opportunities and business interruption; and (6) evacuation expenses. COUNT III Breach of Warranty of Habitability, RPL 235-b (As against Defendant Ocean Premises, LLC) 89. Plaintiffs repeat and reallege all preceding paragraphs of this Complaint, as if

fully set forth herein. (a) Breach from October 30, 2012 through November 30, 2012 90. Defendant 1 West Street impliedly warranted to the Class that the building was fit

for human habitation and further that the Class Members were not subject to any conditions endangering or detrimental to their life, health or safety. 91. Class Members were prevented from occupying the building from October 30,

2012 through November 30, 2012. 92. Defendant 1 West Street breached the implied warranty of habitability by

negligently preparing for the storm surge by Sandy, despite adequate notice, actual and/or constructive, and by failing to mitigate damages thereafter, such that extensive damage was caused to the mechanical and electrical systems, conditions so severe that 1 West Street was not habitable and Class Members continue to experience untenable conditions.

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93.

As a direct and proximate result of Defendant 1 West Streets actions, Class

members have suffered and continue to suffer damages. (b) Breach from November 30, 2012, through Present 94. On November 30, 2012, Defendant 1 West Street impliedly warranted to the Class

that the building was fit for human habitation and further that the Class Members were not subject to any conditions endangering or detrimental to their life, health or safety. 95. On November 30, 2012, 1 West Street was unfit for occupancy and contained

conditions materially affecting the health and safety of Class Members, including but not limited to: (1) Frequent and lengthy power outages, including outages for 16 hours; (2) Persistent noise and smell of diesel fuel caused by the generator that permeates the building; (3) Limited elevator functioning, including use of only one elevator instead of five elevators; (4) Frequent and repeated instances of Class Members being trapped in malfunctioning elevators; (5) Brown water and water filled with sediment that is not fit for consumption; (6) Low water pressure and lack of hot water; (7) Loss of heat during power outages; (8) Diminished security and safety during power outages; (9) Food spoliation during power outages; and (10) Loss of intercom system at all times, allowing visitors to enter the building and have access to all floors unannounced. 96. Class Members reasonably expected that the essential functions to be provided at

1 West Street. As a direct result of Defendants failure to provide and maintain the Premises in a habitable condition, the health and safety of Class Members has been materially affected. 97. Through the fault and the negligence of the owners of 1 West Street, their agents

and employees, Defendants breached their duty to mitigate the damages caused by flooding and restore the real property to a reasonably safe condition. 98. As a direct and proximate result of Defendants actions, Class Members have

suffered and continue to suffer damages.


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