Andrew Podolski – Blog Archive

New Bill Clarifies Statute of Limitations For Community Association Transition Litigation Matters

Andrew Podolski on January 18, 2022

Category: Community Associations

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

Andrew Podolski on January 13, 2022

Category: Community Associations

virtual hoa member meetings nj 2022 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. Read More about New Legislation Permanently Allows Community Association Members to Participate in Member Meetings Via Remote Communication

Navigating the Transition Litigation Process to Minimize Costs and Maximize Potential Recovery

Andrew Podolski on April 27, 2017

Category: Transition
Tag: community association transition, construction litigation, transition attorney, transition litigation, Transition of Control

Transition from developer to unit-owner control of a residential community association generally unfolds in one of two ways. In many instances, the “Transition” process is uneventful – there are no major design or construction defects and the sponsor/developer works with the association board to amicably resolve all outstanding matters such as completing punch-list construction items, making sure the association’s reserves and other accounting matters are complete, release of bonds, etc.

While a peaceful Transition is often accomplished between a unit-owner board and sponsor/developer, there are unfortunately some instances when Transition is not so easy and litigation ensues.

Typically, Transition litigation arises when there are major design/construction defects which are too costly for the sponsor/developer and the contractors to voluntarily repair. When Transition litigation becomes inevitable, the following are three important steps a board can take to minimize costs and maximize potential recovery:

10 Easy Ways Owners Can Cut Construction Costs and Reduce Risks Now

Andrew Podolski on September 7, 2016

Category: Case Studies
Tag: Reduce Construction Costs

The good news is that owners can reduce construction costs and risks. Following are Stark & Stark’s Top 10 tips for owners to consider:

Refinance. You can cut construction costs, improve loan terms, and reduce risks by taking advantage of low interest rates, rising property values and available financing.
Obtain Competing Proposals. You can save money and reduce risks by obtaining proposals and information from competing contractors and choosing the best for your job.
Expedite Documents. You can save money and reduce risks by expediting the negotiating and drafting of construction contracts, lien and claim waivers, and other documents you need.
Cap Costs. You can limit construction costs to a guaranteed maximum price and also require that work be approved in advance in writing.
Ensure Timely Completion. You can avoid delays by including deadlines and liquidated damages if work is not timely completed.
Ensure Satisfactory Completion. You can prevent problems by including protections you need, including, adequate insurance, indemnification, payment and performance bonds, and lien and claim waivers and releases.
Ensure Compliance. You can avoid fines and penalties by ensuring that all contractors and subcontractors timely obtain permits and approvals and comply with laws, codes, ordinances, rules, regulations, and restrictions.
Obtain Insurance. You can cut costs and reduce risks by obtaining and reviewing all insurance policies to ensure that they are up to date and you and other parties actually have adequate insurance.
Avoid Ambiguity. You can prevent problems by ensuring that contracts, plans and other documents say what you mean, do not conflict, and that any ambiguity will not be interpreted against you.
Include Other Protections. You can cut costs and reduce risks by including other rights you need in your jurisdiction, including rights to withhold payment, limit your liability, pursue the dispute resolution option you choose, and recover damages and legal fees.

These are just a few ways you can reduce construction costs and risks with the help of experienced counsel. Evaluating these issues requires careful review on an individual basis. The attorneys at Stark & Stark can help you address these and other issues.

Tempted By A Quick Transition Settlement? Not So Fast!

Andrew Podolski on July 19, 2016

Category: Community Associations, Litigating Claims
Tag: transition settlement

For a newer community association board that has recently undergone transition from developer to unit owner control, there is significant temptation to accept a quick, lump sum settlement from the developer to “settle” any remaining punch list items. New board members are often in active and frequent communication with the developer, including any developer-appointed (non-unit owner) representatives who are still sitting on the board. In addition, developers are often willing to work with associations up to and during transition to resolve any outstanding construction issues. With a seemingly cooperative developer on the one hand, and the immense costs posed by litigation on the other, boards frequently adopt a “take what we can get” approach to resolving outstanding issues with a developer rather than digging in and using the threat of litigation to leverage a better settlement. At best, this approach will most likely result in the association leaving money on the table; at worst, it will cost unit owners tens of thousands in future special assessments.

When a developer sells 75% of the units in a condominium or home owner association development, majority control of the association board is turned over to unit owners from the developer (who, up until this point, had its own representatives controlling the board). During this process, known as Transition, a developer’s primary concern is to pave the way to selling off the remaining units, obtain releases of its performance bonds and, most importantly, get the association to sign a litigation release that will prevent the association from ever suing the developer in the future. In order to get a litigation release, the developer will often offer a seemingly large sum of money. Often, the amount the developer offers actually exceeds the cost to fix any open punch list items that have yet to be completed. This seemingly generous offer by the developer is designed to tempt the board into quickly releasing the developer from any future claims.

Judicial Panel on Multidistrict Litigation Assigns Multiple Putative Class-Action Suits Over Faulty Outdoor Decking to US District Court

Andrew Podolski on January 28, 2015

Category: Litigating Claims

On January 7, 2015, the Judicial Panel on Multidistrict Litigation (JPML) ordered that six putative class-action lawsuits stemming from Colorado, Illinois, Indiana, Iowa, North Carolina and Ohio will be venued and centralized in the U.S. District Court for the District of New Jersey.

Author: Andrew Podolski