Belmont Condominium Ass'n v. Geibel
432 N.J. Super. 52
| N.J. Super. Ct. App. Div. | 2013Background
- Belmont Condominium Association sued Monroe Station and subcontractors for construction defects, PREDFDA CFA violations, and related damages from water infiltration and mold.
- POS and marketing materials labeled developer as experienced; later owner/developer admitted Belmont was his first built project.
- Water leaks and mold appeared from 2000s; multiple parties involved in remediation and investigations.
- Experts attributed leaks to construction defects (windows, EIFS/stucco, flashing) and/or maintenance failures; a trial with apportionment occurred.
- Jury found 80% liability against Monroe Station; CFA treble damages awarded; prejudgment interest applied to entire CFA award; later appeals addressed standing, apportionment, and prejudgment-interest issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to pursue CFA damages for common elements | Association has standing as the real party in interest for common elements | Association lacks standing to aggregate non-purchasers’ losses and to pursue CFA for these damages | Affirmed standing for common elements; vacated window damages (see Part II) |
| Windows as common elements vs unit elements | Windows are common elements under NJCA; Association may recover | Windows are unit elements; Association lacks standing | Windows are unit elements; Association lacked standing to recover replacement windows; award vacated for cost of windows |
| Accrual and tolling of CFA claims (statute of limitations) | Discovery rule tolls where damages were ascertainable; damages occurred around 2004 | Claims accrued earlier and should have been time-barred | CFA claims tolled by discovery rule; accrual around 2004, within 6-year limit |
| Apportionment of damages among defendants | Damages tied to common element defect; apportionment appropriate | Difficult to apportion interior damages to exterior defects | Damages apportioned among Monroe Station, Badger Roofing, and Mayito’s; rough apportionment allowed for complex defect array |
| Prejudgment interest on CFA treble damages | Interest as compensatory; must follow Rule 4:42-11 | Treble CFA damages include punitive element; interest should not apply to punitive portion | Prejudgment interest limited to compensatory portion; vacate interest on punitive (treble) portion; remand for recalculation |
| Excess proceeds and distribution | Excess funds from CFA damages should be used to repair common elements | Distribution should follow governing documents and law | Association owns trebled damages; distribution governed by Master Deed/By-laws; excess funds to be applied per governing documents |
Key Cases Cited
- Crescent Park Tenants Ass’n v. Realty Equities Corp. of N.Y., 58 N.J. 98 (1971) (standing and association enforcement in common-element matters)
- Siller v. Hartz Mountain Assocs., 93 N.J. 370 (1983) (association standing to sue for common elements; damages to common elements)
- Port Liberte Homeowners Ass’n v. Sordoni Constr. Co., 393 N.J. Super. 492 (App.Div. 2007) (association standing to pursue CFA against third-party contractors for common elements)
- Gennari v. Weichert Co. Realtors., 148 N.J. 582 (1997) (CFA damages without need for traditional reliance; misrepresentation by agents)
- Cox v. Sears Roebuck Co., 138 N.J. 2 (1994) (CFA unlawful practice elements; no need to prove reliance for certain claims)
- Leon v. Rite Aid Corp., 340 N.J. Super. 462 (2001) (CFA liberal construction; reliance not required in some CFA claims)
- Miller v. American Family Publishers, 284 N.J. Super. 67 (1995) (literal truth not defense to deceptive impact of overall advertising)
- Campione v. Soden, 150 N.J. 163 (1997) (apportionment standards where damages difficult to allocate)
- Boryszewski v. Burke, 380 N.J. Super. 361 (App.Div. 2005) (apportionment favored; rough allocation allowed)
- Holmin v. TRW, Inc., 330 N.J. Super. 30 (2000) (accrual of claims; damages and discovery rule)