New Jersey Supreme Court Increases Jurisdictional Limits

Effective July 1, 2022, the New Jersey Supreme Court has increased the jurisdictional limits in civil courts. The New Jersey Special Civil Part jurisdictional limit has increased from $15,000 to $20,000. The jurisdictional limit for New Jersey Small Claims Court has also increased from $3,000 to $5,000.

This increase will prove extremely beneficial to Community Associations whose collection cases are preferably brought in the Special Civil Part. Although it is preferred to bring these cases in Special Civil Part, with the old $15,000 jurisdictional limit, Association cases seeking judgments for $17,000 or $18,000 had to be filed in the Law Division. The Law Division has higher filing fees, requires personal service, has longer discovery schedules, and can often take a year or more to conclude. Conversely, the Special Civil Part has lower filing fees, requires service by mail, and can often conclude with a trial scheduled within approximately four (4) months. Increasing the jurisdictional limit in the Special Civil Part now allows Associations to file cases there, rather than in Law Division, for amounts up to $20,000.

For more information on this, or on other collection matters, contact Melissa A. Volet, Esq.

Proposed Bill Would Require All Commercial Liability Insurance Policies Issued In New Jersey to Specify Coverage For “Faulty Workmanship”

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.”

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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.

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Eminent Domain Issues Affecting New Jersey Condominiums – Can the Government Really Take Part of Our Common Elements?

Eminent domain, sometimes referred to as condemnation, occurs when the government exercises its power to take private property for public use. When this awesome power is exercised, the government must pay the property owner “just compensation” for the property taken, as required by the Fifth Amendment of the United States Constitution.

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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.

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New Legislation Permanently Allows Community Association Members to Participate in Member Meetings Via Remote Communication

virtual hoa member meetings nj 2022The 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

COVID-19 Immunity Law for Community Associations Expires January 1, 2022

As we reported in our previous blog, on July 1, 2021 Governor Murphy signed a COVID-19 liability protection bill and, by doing so, gave community associations some immunity from certain legal claims arising from COVID-19. The law provided that a community association “shall be immune from civil liability for damages arising from, or related to, an exposure to, or transmission of, COVID-19 on the premises” providing the association has prominently displayed a sign at entrances to common spaces.

That law expires as of January 1, 2022, and the protections provided by the COVID immunity law are no longer in effect. Boards and managers will have to evaluate whether and how this change will impact the operation of association common amenities, especially indoor amenities like clubhouses, meeting rooms, fitness rooms, indoor pools, and other facilities. We urge you to have this discussion without delay and contact legal counsel for any questions.

Five Steps to Successful Trustee Elections

Step One – Start Early. The time to start working on your next election is the day after your last election.

  • Make notes for next year. What worked well? What could be done better?
  • Clearly note the new (and existing) trustee terms in the minutes. Too often trustee terms get confusing, especially when there are appointments to vacant positions.
  • Save the draft minutes so they can be located and approved at the next annual meeting.
  • Consider amendments that will make the election process easier: electronic voting, electronic notice, quorum reduction, absentee ballots, eliminating double ballot procedures. Get those amendments approved and recorded at least three months before your next annual meeting.

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Condo Association Boards: Plan for the Future by Staying Ahead of Maintenance and Repairs

If you serve on the board of a condo association, you’ve likely seen instances of kicking the can down the road and deferring needed maintenance and repairs. Allocating and reserving funds for repairs can be a difficult, complicated process, and coming to a decision about these issues can easily lead to tensions between board members and neighbors.

Even so, it’s important to take steps now to ensure the adequate repair and maintenance of your building. Deferred repairs and insufficient reserves can lead to greater and more urgent expenses down the road—as well as jeopardize the safety of your residents and put you at risk of legal liability.

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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.

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