Assemblyman Gary S. Schaer of New Jersey’s 36th District introduced a proposed bill, A.B. 1075, that would require all commercial liability insurance policies issued in New Jersey to include “faulty workmanship” within the definition of “occurrence.”
In The Wake Of The Surfside Tragedy Fannie Mae And Freddie Mac Issue “Temporary” Requirements For Condominiums And Cooperatives
The collapse of the Champlain Towers South in Surfside, Florida, in June 2021, sent shockwaves throughout the United States and was a wake-up call to condominiums to the dangers of aging infrastructures. In light of this tragic event, secondary mortgage market giants, Fannie Mae and Freddie Mac have issued bulletins advising of new “temporary” requirements for mortgages issued in connection with condominiums and cooperatives.
New Bill Clarifies Statute of Limitations For Community Association Transition Litigation Matters
On Tuesday, January 18, 2022, Governor Murphy signed into law Senate Bill 396, which automatically tolls (i.e. pauses) the 6-year Statute of Limitations for construction defect claims by condominium and/or homeowner associations and cooperative corporations until the first election when unit owners take majority control of the association board (“Transition”). Although not black letter law, Transition had historically been recognized as the milestone when the Statute of Limitations began to run for construction defect claims.
New Legislation Permanently Allows Community Association Members to Participate in Member Meetings Via Remote Communication
The New Jersey Nonprofit Corporation Act (N.J.S.A. 15A:5-1, et seq.) (the “Act”) was amended on Monday, January 22, 2022, to permanently allow remote community association member meetings (using Zoom, Teams, or other remote communication technologies). Previously, the Act permitted remote meetings of members-only when New Jersey was in a declared state of emergency, such as the COVID-19 pandemic. This new legislation (A5549/S4112) gives communities more flexibility in conducting association member meetings and will hopefully result in increased member attendance for quorum and voting purposes. Continue Reading New Legislation Permanently Allows Community Association Members to Participate in Member Meetings Via Remote Communication
Is a New Statute of Limitations on the Horizon for Community Association Construction Defect Claims?
Under New Jersey’s current statute of limitations, N.J.S.A. §2A:14-1, all construction defect claims, i.e. property damage claims, must be filed within six years from when the potential claimant knew or should have known he or she had a claim. Tempered only by the equitable doctrine referred to as the “discovery rule,” which stops the limitations clock from running under certain circumstances, New Jersey’s six-year statute applies equally to all property damage claimants. However, a bill working its way through the legislative process in New Jersey may change the game for common interest properties, including co-ops, community associations, and condominiums.
Construction Defects and New Jersey’s Statute of Limitations – When to File Suit
This week the New Jersey Appellate Division issued its Order and Opinion in the case of Collins v. PJW Servs., 2021 N.J. Super. Unpub. LEXIS 1556. Plaintiffs owned a home in Haddonfield, New Jersey, and wanted to add an extension, including a second story. Plaintiffs retained the services of an architect to design the architectural plans, bid the project, and to oversee construction. To perform the actual work, Plaintiffs hired PJW Services (PJW).
Shortly after construction commenced, Plaintiffs noticed water leaks in their garage and brought this issue to the attention of their builder on December 12, 2010. As most contractors do, PJW assured Plaintiffs the leak was insignificant since the roof work was still ongoing. PJW further advised that once the roof was sealed, the leak would no longer be a problem. Unfortunately for Plaintiffs, that was not the case.
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Read Before You Proceed – A Cautionary Tale at the Crossroads of Technology and Construction
COVID-19 unquestionably changed the world in countless ways. One of the most significant is that it forced everyone online, from our youngest to our most elder. Those who resisted the lure of online shopping or social interactions pre-COVID were thrust into the jungle of the internet, likely forever captured by its convenience. However, modern-day conveniences are not without traps and pitfalls – enter the case of Wollen v. Gulf Stream Restoration & Cleaning, LLC, issued by the New Jersey Appellate Division on July 9, 2021.
The Dollars and Sense of Transition Litigation – Retaining the Right Counsel
It may come as no surprise that litigation can be costly. Many times, potential claimants seeking to temper their litigation costs look for the least expensive counsel they can find. But in the end, are litigants truly saving money by focusing on the lowest hourly rate?
Retaining the wrong attorney simply because that attorney or firm offers the lowest rates can have devastating consequences for any litigant. When your community association is seeking transition counsel, it’s critical to consider a number of factors to ensure your resources are well placed and well spent.
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The Common Element Conundrum – When Common Elements Damage Unit Interiors
One of the most frequent hot button issues in condominium communities, particularly those with multi-residential buildings, is whether or not the association will pay to repair damage to a unit’s interior stemming from a defect or issue, such as a water leak, in the common elements. A condominium association has specific duties and obligations in maintaining the general common elements of the community for which it is responsible for operating and managing. These duties and obligations are not only spelled out in the association’s governing documents, but also are required by law. For instance, the New Jersey Condominium Act requires that the association “shall be responsible for” such things, including but not limited to, “[t]he maintenance, repair, replacement, cleaning and sanitation of the common elements.”
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How Can the Community Association Collect From Insurance Policies Insuring the Sponsor, General Contractor, Subcontractors, and Design Professionals?
Liability insurance policies insuring sponsors, general contractors, subcontractors, and design professionals are confusing and loaded with complex terminology that make them difficult to understand. Yet, it is these policies that hold the key to the ability of a community association to recover damages from design and construction deficiencies. Rather than making your eyes glaze over by going through a lengthy analysis of the arcane language of these policies, here, in a nut shell, stripped of the legal jargon, are the basic concepts you need to know: