News: Brokerage

An attorney discusses labor law 240 and shareholder renovations

Most people know about Labor Law 240 in the context of renovations on buildings. This is the law that makes owners, contractors and their agents liable for injuries to workers who fall from a height. It is also known as the "Scaffold Law." However, falling from a height can include a wide range of causes. It can include when a worker stands on a box to install a light fixture and falls. Most shareholders would be surprised to learn that it can also apply in some instances to renovations in their apartments. The statute applies to "All contractors and owners and their agents, except owners of one and two-family dwellings who contract for but do not direct or control the work...." The exception for owners of one and two-family dwellings is known as the "Homeowner Exemption." One family dwellings has been interpreted by the courts to include co-op apartments. The catch is that these owners cannot "direct or control the work." What that means is open to interpretation. Shareholders who like to give a lot of orders and are very involved in the day-to-day details of the work in their apartment renovations will find it harder to be let out of such cases, since the plaintiff will be claiming that they directed and controlled the work. Shareholders who have more traditional roles where they have architects communicating with the contractor and just comment on aesthetic issues will have an easier time when the attorneys file motions to be dismissed from the law suit. Language in the contracts between shareholders and their contractors can be helpful in establishing this, so shareholders are well-advised to work with an attorney who knows this area of the law when they are entering into contracts with contractors and alteration agreements with the co-op. The co-op can also be sued under this law as an owner. However, the same reasoning has not been applied to condominium buildings for injuries to workers in an individual unit, even when they retain the right ot review plans. C. Jaye Berger, Esq., is principal at Law Offices C. Jaye Berger, Manhattan, N.Y.
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