Saturday, November 27, 2010

New Jersey Community Associations Need to Address Bed Bugs

Bed bug problems in New Jersey real estate are fairly new.  Condominium and Homeowner Associations in New Jersey need to be aware of this issue.
But bed bug grievances seem to fall into certain types of claims.

The first claim relates to personal injury. A person stays at a hotel or perhaps rents a room and gets bitten. He or she files suit claiming the landlord failed to provide habitable premises or was negligent.

A second kind of claim relates to a landlord or real estate seller who fails to disclose. Here the victim proves the landlord or seller knew or should have known of infestation and did not disclose the problem. This may be a fraud claim or a negligent representation claim.

A related claim may be under a law called the Consumer Fraud Act which prohibits unconscionable trade practices. The law specifically applies to certain real estate transactions, is easier to win than traditional fraud, and allows for triple damages which are called treble damages and attorneys fees. Sellers, brokers and other people may be exposed under this very powerful law.

Other claims may be filed against condominium or home owner association complexes on the theory that bed bugs entered through common elements, for which they have legal responsibility. Common elements may include space between walls, space under first floors, space under attics, and common law and hallway areas.
Bed bug claims may also be brought against extermination companies for negligent extermination services and against the property manager for negligent performance, negligent supervision, and negligent training. Here, some form of prior notice would likely be required.

In landlord/ tenant cases, some tenants are seeking either rent reductions or lease terminations based on bed bug infestation. Results in these areas seem to be very fact sensitive. Documentation on both sides is key --and the lease and other real estate documents must be carefully reviewed to determine rights and obligations.

Here is the bottom line. Bed bugs are at infestation levels and they are found all over the place. Litigation will continue, and will likely explode. The more people are exposed, the more they will seek relief from
the courts.

We are the very early stages of this from a legal standpoint. This means possible responsible parties must be pro-active, vigilant, and be able to document their reactions and concerns. Promises alone will not provide legal protection. Prompt effective, documented actions will likely be key.

Lieberman & Blecher proudly represents community associations and files claims involving community associations through out New Jersey.

1 comment:

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