In New United Corporation v. Essex County, a New Jersey appeals court recently addressed the thorny issue of how a court may resolve a dysfunctional condominium board. In this case, the common assets were not being maintained in a three unit commercial association. Essex County was a tenant in two of the units and by contract controlled the association.
The County planned to use these offices in conjunction with plans to move a medical facility. Those plans apparently did not materialize and it appears the County lost interest in the commercial units. Allegedly, the County defaulted on its association responsibilities and things that needed to be maintained were not.
Predictably, litigation arose and the appeals court ruled as follows: a received could be appointed to run the association, but with limited authority and for a limited duration. The idea is that the receiver would do the least amount of work needed to maintain the facility. The association could continue to meet and operate, but had to allow the receiver to perform its court required tasks.
Breaking up is hard to do --and working with a court appointed receiver can be even harder. But dysfunctional Boards beware --- if you are not getting the job done, a court may very well appoint someone to act in your place until matters can be sorted out.
Invariably, this not a pleasant situation. Which means that Boards must carry out their responsibilities in an honest, open and fair manner. If they fail to do so, a Judge may appoint someone to take over control of the association.
Wednesday, April 21, 2010
Monday, April 12, 2010
Rain Gardens Show that HOAs and Condos are Green
Developer should build rain gardens in community association projects.
Condos and HOAs can all develop rain gardens. These are eye appealing gardens that manage or help manage stormwater runoff.
Many associations already have to manage and maintain highly technical stormwater control mechanical devices. While rain gardens need to be maintained, they require little more effort than conventional gardens, they look nice, they help control and treat runoff, and they make a bold statement that the association is truly "green and caring."
Stormwater control can be accomplished through varied systems. Depending upon the association's needs, a rain garden may provide a solution or at least part of a solution. An engineer should evaluate your needs and make this determination -- in conjunction with the association board.
When runoff is not controlled it leads to flooding, surface water pollution and property damage. New developments may require intricate stormwater control, and this can be part it.
For more information, please read more about rain gardens.
Lieberman & Blecher provides environmental legal representation throughout New Jersey. www.liebermanblecher.com
Wednesday, April 7, 2010
When Condo Fires Strike......
In condominium communities and other communities responsible for exterior maintenance and repair, the worst four letter word that can be uttered is “fire.” Obviously, fires can be very destructive and they can injure or kill. All reason enough to hate them.
But assuming no one is hurt, fires test associations and management companies to their core .
First, you have the issue of repair. How will this be funded? Will the association’s insurance policy pay? Or the unit owner’s or perhaps the tenant’s policy (if the unit was being rented?
Perhaps the answer will be one of the carriers. Or all of them may assign some percentage of responsibility and pay the costs.
How will funding be obtained? Will the carriers contract directly with the contractors and pay as invoices are presented ? Or will the management company pay and then seek reimbursement.
Who will keep track of re-imbursement? Hint: this is much easier to do if one carrier is footing the bill rather than several. It becomes more complicated when multiply carriers are paying at different percentages.
Also, someone needs to watch what the carriers’ per claim limit is. If its one carrier, its pretty simply. If a few are paying, and each have different caps –well, good luck!
Will the responsible party be asked to pay any amount that is not covered by insurance? If so, what will you do when he/she/it refuses? Right it off? Take enforcement action? Refer to counsel? What does state law have to say about this?
And will the unit owner who has been displaced be paid for lost rent or re-location? That answer may depend on insurance coverage issues, liability determinations, and local law?
Also, while the association my be responsible for the exterior and everything but the finished walls –who will pay for cabinets, other improvements and contents? And will this be coordinated with the other contractors?
Will you use a claims adjuster? They can help secure the best deal with the carriers and may help with coordination of the re-construction. But they charge a significant fee for their services. They may be worth the expense –but this must be factored in.
These are only some of the issues. Since a burned out unit may take a year or more to resolve, tensions and frustration levels can run high. Which makes this a very defining moment. Are you up for the challenge?
Celebrating our 10th year, Lieberman & Blecher represents many Homeowner Associations and Condominums throughout New Jersey. http://www.liebermanblecher.com/
Friday, April 2, 2010
Associations May Challenge Wrongful Insurance Claim Denials
Homeowner Associations and Condominiums often ask their insurance companies to pay for needed claims. This can include environmental issues, fire damage claims, thefts and claims relating to employee misconduct.
While some claims may not be covered, you should know that some insuance companies do deny claims in cases where at least some coverage SHOULD be provided.
When insurance companies deny claims, they must do so for reasons that relate to the insurance policy. Insurance policies are written contracts between the insurance company, also known as the insurer, and the policyholder, also called the insured. If a claim occurs that is covered under the terms of the insurance policy, the carrier must provide coverage.
It is always wrong for an insurance company to deny coverage when no reason exists for denying coverage. When you feel that your insurance company has wrongfully denied your claim, you may have to sue your insurance company. This type of lawsuit is called a declaratory judgment action. You are asking the Court to declare that there is coverage and to order the carrier to pay all necessary costs.
In certain instances, if an insurance company really misbehaves, Courts will allow cases to proceed seeking punitive damages against the insurer even when it ultimately is determined that there is no right to coverage. In these cases, Courts have generally held that insurance companies have a duty to deal with their insureds fairly and in good faith.
This duty of good faith and fair dealing comes from a recognition that insurance companies have a special relationship with their policyholders. Policyholders purchase insurance so that they know that in a time of need, an insurance carrier will be standing next to them. When an insurance company intentionally avoids its obligations by acting in bad faith, this leaves the policyholder in an even worse situation then he/she should be in.
It is incumbent upon the insurance carrier to act fairly and in good faith. The carrier must make a decision based on the language in the contract and the carrier needs to remember that it enjoys a special relationship with the policyholder, one based on trust, and sold on this notion of trust. We all know that we are told that we are in "good hands" with one insurance company and another acts like a "good neighbor."
In fact, many companies are responsible. But when policyholders are mistreated, they need to remember that a statute of limitations may require that litigation be filed by a certain date or the right will be lost. In such cases, policyholders should promptly seek out the services of experienced legal counsel.
Insurance companies have many lawyers who work for them and protect them. More often than not, they treat their policyholders fairly and with dignity. But in the rare instance when a carrier act badly, you should even the sides by retaining competent professional assistance to fight back and protect your rights.
While some claims may not be covered, you should know that some insuance companies do deny claims in cases where at least some coverage SHOULD be provided.
When insurance companies deny claims, they must do so for reasons that relate to the insurance policy. Insurance policies are written contracts between the insurance company, also known as the insurer, and the policyholder, also called the insured. If a claim occurs that is covered under the terms of the insurance policy, the carrier must provide coverage.
It is always wrong for an insurance company to deny coverage when no reason exists for denying coverage. When you feel that your insurance company has wrongfully denied your claim, you may have to sue your insurance company. This type of lawsuit is called a declaratory judgment action. You are asking the Court to declare that there is coverage and to order the carrier to pay all necessary costs.
In certain instances, if an insurance company really misbehaves, Courts will allow cases to proceed seeking punitive damages against the insurer even when it ultimately is determined that there is no right to coverage. In these cases, Courts have generally held that insurance companies have a duty to deal with their insureds fairly and in good faith.
This duty of good faith and fair dealing comes from a recognition that insurance companies have a special relationship with their policyholders. Policyholders purchase insurance so that they know that in a time of need, an insurance carrier will be standing next to them. When an insurance company intentionally avoids its obligations by acting in bad faith, this leaves the policyholder in an even worse situation then he/she should be in.
It is incumbent upon the insurance carrier to act fairly and in good faith. The carrier must make a decision based on the language in the contract and the carrier needs to remember that it enjoys a special relationship with the policyholder, one based on trust, and sold on this notion of trust. We all know that we are told that we are in "good hands" with one insurance company and another acts like a "good neighbor."
In fact, many companies are responsible. But when policyholders are mistreated, they need to remember that a statute of limitations may require that litigation be filed by a certain date or the right will be lost. In such cases, policyholders should promptly seek out the services of experienced legal counsel.
Insurance companies have many lawyers who work for them and protect them. More often than not, they treat their policyholders fairly and with dignity. But in the rare instance when a carrier act badly, you should even the sides by retaining competent professional assistance to fight back and protect your rights.
Thursday, April 1, 2010
Lieberman & Blecher April 2010 newsletter
Sign up for our monthly newsletter, which is sent to your email address.
Every month we feature 3-4 short articles discussing a different areas of New Jersey environmental law or condomimium/HOA law.
The articles are quick bites -often with links or references if you need some more information.
There is no obligation –we enjoy sharing and look forward to your comments.
Click here for this months newsletter. You can sign up from this link. We would love to have you on-board.
Founded in 2000, Lieberman & Blecher is a New Jersey environmental law firm serving all of New Jersey in state and federal court. http://http://www.liebermanblecher.com//
Every month we feature 3-4 short articles discussing a different areas of New Jersey environmental law or condomimium/HOA law.
The articles are quick bites -often with links or references if you need some more information.
There is no obligation –we enjoy sharing and look forward to your comments.
Click here for this months newsletter. You can sign up from this link. We would love to have you on-board.
Founded in 2000, Lieberman & Blecher is a New Jersey environmental law firm serving all of New Jersey in state and federal court. http://http://www.liebermanblecher.com//
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