§514B-141  Tort and contract liability; tolling of limitation period.  (a)  A unit owner is not liable, solely by reason of being a unit owner, for any injury or damage arising out of the condition or use of the common elements.  Neither the association nor any unit owner except the developer is liable for that developer's torts in connection with any part of the condominium that that developer has the responsibility to maintain.

     (b)  An action alleging a wrong done by the association, including an action arising out of the condition or use of the common elements, may be maintained only against the association and not against any unit owner.  If the wrong occurred during any period of developer control and the association gives the developer reasonable notice of and an opportunity to defend against the action, the developer who then controlled the association is liable to the association or to any unit owner for:

     (1)  All tort losses not covered by insurance suffered by the association or that unit owner; and

     (2)  All costs that the association would not have incurred but for a breach of contract or other wrongful act or omission, as the same may be established through adjudication.

Whenever the developer is liable to the association under this section, the developer is also liable for all expenses of litigation, including reasonable attorneys' fees, incurred by the association.

     (c)  Any statute of limitation affecting the association's right of action against a developer is tolled until the period of developer control terminates; provided that, notwithstanding section 657-8, no statute of repose shall affect the association's right of action against a developer sooner than two years after the period of developer control terminates.  A unit owner is not precluded from maintaining an action contemplated by this section because the unit owner is a unit owner or a member or officer of the association.  Liens resulting from judgments against the association are governed by section 514B-147. [L 2004, c 164, pt of §2; am L 2005, c 93, §7; am L 2006, c 273, §24; am L 2023, c 29, §2]