Community Associations

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.


Continue Reading Construction Defects and New Jersey’s Statute of Limitations – When to File Suit

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.

Continue Reading Read Before You Proceed – A Cautionary Tale at the Crossroads of Technology and Construction

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.


Continue Reading The Dollars and Sense of Transition Litigation – Retaining the Right Counsel

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.”

Continue Reading The Common Element Conundrum – When Common Elements Damage Unit Interiors

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:

Continue Reading How Can the Community Association Collect From Insurance Policies Insuring the Sponsor, General Contractor, Subcontractors, and Design Professionals?

Stucco is a product that has been in use as an exterior building cladding since the early 1800’s. It is made from Portland cement, sand and water. When installed correctly, stucco has been a reliable building material that looks good and allows incidental moisture infiltrating behind the stucco to be safely and efficiently evacuated from the building. Once stucco dries it is as hard as concrete.

Continue Reading What’s Wrong With the Stucco on Our Buildings?

If your community association is involved in matters requiring the hiring of experts, including, but not limited to, transition-related issues, or in evaluating what to do about design and/or construction deficiencies, financial irregularities, or environmental concerns, among others, the association is going to need to engage one or more experts to assist in investigating and determining the cause and scope of each problem, a protocol for fixing each problem, and evaluating who is responsible for the damages sustained by the association.

Continue Reading A Cautionary Tale: Resist the Impulse to Exert Pressure on Your Expert to Give Opinions They Don’t Really Believe

Brick is among the materials that are most commonly used as an exterior cladding material on condominiums and other residential buildings in New Jersey. If correctly installed and maintained, it will usually last for the life of the building without allowing water to penetrate inside the wall cavity where it can damage sheathing and framing. Nevertheless, we are routinely called upon to assist condominium and homeowner’s associations that have reports of damage to their buildings caused by deficient design and/or installation of brick.

Continue Reading What Can the Association Do About Damage From Water Infiltration Through Brick?

Your community association may become aware of significant transition, design, and/or construction defect claims. This awareness may come from the association receiving complaints from unit owners, or perhaps your property manager or a transition engineering inspection report will have visually identified issues of concern. Whatever the source of the Board’s knowledge, in exercising its fiduciary responsibilities, the Board members may find themselves confronting a potentially expensive decision fraught with all kinds of financial and political consequences. Does the association litigate all the way to trial if necessary? Does the association file suit to posture that it is serious about litigation, and then settle without going through expensive depositions? Does it negotiate with the sponsor, knowing that the association will not litigate but will take whatever it can get?

Continue Reading Factors to Evaluate in Deciding Whether the Cost of Litigation Is Worth the Likely Return on Investment

It has been several months since the New Jersey Supreme Court decided Cypress Point Condo Ass’n v. Adria Towers, LLC.

The issue in Cypress Point was whether rain water damage caused by a subcontractor’s faulty workmanship constituted “property damage” caused by an “occurrence” to trigger coverage under a condominium developer’s commercial general liability (CGL) insurance policy. Cypress Point, a condominium association, filed claims against Adria Towers, the developer, and its insurers, as well as various subcontractors. Adria Towers was also the general contractor on the condominium project and hired the subcontractors who performed the construction work. The Association alleged faulty workmanship during construction and claimed consequential damages.


Continue Reading What Should Condominium Associations Do After Cypress Point?