A condo association of a condominium in Ramat Gan demanded, inter alia, that the contracting company repair construction defects discovered in the condominium systems and compensate the residents for emotional distress.
The Court accepted the claim and ordered the contracting company to repair the deficiencies, but compensation for emotional distress was denied because the claimant was the condominium association and not the residents themselves. The condo association is authorized to file a claim on behalf of the residents, but it is limited to a claim relating to construction defects, the proper maintenance of the condominium and its management. The condo association is not entitled to sue for a decrease in the value of the condominium apartments or for specific personal damage caused to any of the residents of the condominium. Here, a series of sealing and insulation defects were discovered in the contractor's work, while the cost of repair by the contracting company is about one-eighth of the amount of compensation sought for the defect. Therefore, the condo association was authorized to represent the residents and a Court order was issued obliging the contracting company to repair the defects discovered. However, if any of the apartment owners suffered emotional distress due to the defects, it is a personal damage that exceeds the authority of the condo association and therefore the claim for such damage was denied.