A legal dispute stemming from the fall of a section of stucco cladding from a 38-story hotel in Lower Manhattan remains stalled nearly six years after the incident. The failure occurred on Christmas 2020, when high winds tore loose a stucco panel that fell onto a neighboring building, just two months after the hotel was completed.
Developer LAM Group sued for breach of contract in New York state court in 2022, seeking $2.8 million, including full replacement of the stucco on one side of the building. Defendants include general contractor Rinaldi Group, subcontractor Bayport Construction and the project architects. The suit relies on a report by an independent consultant that attributes the failure to poor workmanship; even the stucco manufacturer, Dryvit, reportedly pointed to installation problems and deficient fasteners. Rinaldi denies the allegations and has filed a counterclaim against other project participants, who also deny responsibility.
Court-ordered mediation in July 2025 failed, and discovery has been delayed by incomplete depositions and the departure of key employees from the parties involved. In March, a judge granted a default judgment in favor of Bayport against one of its subcontractors. Expert disclosure is expected to conclude at the end of November 2026, with a status conference scheduled for the same month, although trial is not expected before 2027. The case illustrates the liability risks that persist for years after building envelope failures are discovered.
Source: Engineering News-Record (ENR)