§ 47C-3-111. Tort and contract liability. - North Carolina Statutes

§ 47C‑3‑111. Tort and contract liability.

(a)        Neither the association nor any unit owner except thedeclarant is liable for that declarant's torts in connection with any part ofthe condominium which that declarant has the responsibility to maintain.

(b)        An action alleging a wrong done by the association must bebrought against the association and not against a unit owner.

(c)        If an action is brought against the association for a wrongwhich occurred during any period of declarant control, and if the associationgives the declarant who then controlled the association reasonable notice ofand an opportunity to defend against the action, such declarant is liable tothe association:

(1)        for all tort losses not covered by insurance carried by theassociation suffered by the association or that unit owner, and

(2)        for all losses which the association would not have incurredbut for a breach of contract. Nothing in this subsection shall be construed toimpose strict or absolute liability upon the declarant for wrongs or actionswhich occurred during the period of declarant control.

(d)        In any case where the declarant is liable to the associationunder this section, the declarant is also liable for all litigation expenses,including reasonable attorneys' fees, incurred by the association. Any statuteof limitation affecting the association's right of action under this section istolled until the period of declarant control terminates. A unit owner is notprecluded from bringing an action contemplated by this section because he is aunit owner or a member or officer of the association. Liens resulting fromjudgments against the association are governed by G.S. 47C‑3‑117(Other Liens Affecting the Condominium). (1985 (Reg. Sess., 1986), c. 877, s. 1.)