Search Site
Menu

Amended Law Allows Additional Time for Condo Associations to Sue Developers

Governor Phil Murphy signed into law an amendment to the New Jersey Statute of Limitations, which allows more time for condominium and cooperative associations to sue real estate developers in certain circumstances.

New Jersey’s Statute of Limitations, N.J.S.A. 2A:14-1, has for years stated that any plaintiff has six years from the date of accrual to bring a suit for property damage. The statute stated simply that these actions “shall be commenced within six years next after the cause of any such action shall have accrued.” Senate Bill 396 amended N.J.S.A. 2A:14-1 to provide planned real estate development associations with a special status, specifically providing that the time to sue is tolled “until an election is held and the owners comprise a majority of the board.” The amendment also states that actions can be brought for any action “that has not been subject to a final judgment dismissing the claim” as of January 18, 2022, the effective date of the amendment.

The amendment allows that a development association’s time is tolled under this new section for any action the association seeks to bring “against a developer or any person acting through, on behalf of or at the behest of the developer[.]” This does not, on its face, include subcontractors, which means that under the plain text of the statute as amended, time is not tolled for any breach of contract or negligence claims that a developer, once sued, may seek to bring against subcontractors of the developer’s contract. Those subcontractors are acting on behalf of the contractor, arguably not on behalf of the developer. This means that once a condo association sues a developer for a construction defect, the statute of limitations may have run out on those common law actions for contractors and developers to seek relief from the parties who actually performed defective construction.

Also, the amendment states that suits may be brought for actions that have not been subject to a final judgment. This leaves open the possibility that cases may be reopened even if they were previously resolved via settlement agreement, or another judgment that is not a “final judgment.”

Our Attorneys

Recent Twitter Posts

  • New Jersey sets emergency water standards for new chemicals. https://t.co/trgaaLL1mD
    5 months ago
  • How will New Jersey manage stormwater as the climate changes and flooding increases? https://t.co/dhVLALyzZ2
    5 months ago
  • Unprecedented storms are slamming NJ – learn how to be the best advocate for your clients when the next flood hits.… https://t.co/TicH6iAjP0
    5 months ago
  • Trenton Water Works has removed 25 percent of lead pipes throughout its service area. https://t.co/KUvhMsJlvU
    5 months ago

Recent Blog Posts

Supreme Court concludes that attorney review period is not a requirement of absolute auction contracts

On June 9, 2022, the New Jersey Supreme Court unanimously decided that attorney review period is not a required contractual provision for a residential real estate sale by absolute auction.
Read More
Supreme Court concludes that attorney review period is not a requirement of absolute auction contracts

It Depends on the Language – The Non-Disparagement Clause

How enforceable is a non-disparagement clause in an agreement? As is always the case with any contract or agreement, it depends on the language. On May 31, 2022, the Appellate Division
Read More
It Depends on the Language – The Non-Disparagement Clause

DCA Tries Again to Use RSIS to Limit Municipal Stormwater Controls

By Michele Donato, Esq. and Stuart Lieberman, Esq. In the 1990’s, developers claimed that municipal residential development ordinances lacked uniformity, increased development costs, and caused uncertainty in the development process. In
Read More
DCA Tries Again to Use RSIS to Limit Municipal Stormwater Controls

Previous Property Manager Charged with Embezzling and Laundering Stolen Funds from Hamilton Park CO-OP.

Nicolas DePaola of Ewing New Jersey was indicted on twelve charges for embezzling and laundering stolen money from his prior client, Hamilton Park CO-OP. On April 1, 2022, a Mercer
Read More
Previous Property Manager Charged with Embezzling and Laundering Stolen Funds from Hamilton Park CO-OP.

In The Media

  • Gulf Coast Town Center facing foreclosure

    Naples Daily News, September 16, 2015

    Wells Fargo filed a lawsuit Sept. 8 against an affiliate of CBL & Associates, the owners of the decadeold, 1.2 million-square-foot mall in south Fort Myers for a $190.9 million unpaid loan. The center has 94 stores on 204 acres, with such anchors as Super Target, Belk, Best Buy, Dick’s Sporting Goods, Marshalls and Costco...

    Read More
  • Town liable for private company's leaking underground tanks, court rules

    NJ.com Jul 26, 2017

    CRANFORD -- A couple that owned a businesses in town and became sick from leaking underground tanks owned by an adjacent business can sue the township for damages because the tanks were partially ...

    Read More
  • Dark Waters: How a Class Action Catapulted NJ to Forefront of 'Forever Chemicals' Battle

    NJ Law Journal Jan 09, 2020

    As property owners become increasingly aware of PFAS contamination, and as individuals exposed to PFAS learn of the health risks associated with exposure, liability will likely affect entire supply chains.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
Contact Our Firm

Quick Contact Form