STATE OF NEW JERSEY VS. JOSHUA M. GREENÂ (12-02-0322, MIDDLESEX COUNTY AND STATEWIDE)(RECORD IMPOUNDED), A-4392-13T3

Background

The Palisades at Fort Lee: large condominium converted from a 2002 construction project (garage addition, tower, plaza). Sponsor A/V contracted with AJD; AJD subcontracted to Forsa, Benfatto, Luxury (work substantially complete May 1, 2002).
Sponsor converted the property to condominium form in 2005; Association formed but sponsor-controlled the board until unit owners gained full control in July 2006.
After transfer of control, the Association hired Falcon Engineering; Falcon issued a detailed defect report (June 13, 2007) identifying numerous construction deficiencies in common elements.
Plaintiff Association sued various parties in 2009–2011 alleging negligence and breach of warranty for construction defects; claims against AJD, Forsa, Benfatto, Luxury were challenged by summary judgment on statute-of-limitations grounds.
Trial court held the six-year limitations period in N.J.S.A. 2A:14-1 began at substantial completion (May 1, 2002) and granted summary judgment for the construction defendants; motion for reconsideration denied; Association appealed.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
When did the Association's causes of action accrue for limitations purposes?	Accrual did not occur until unit owners controlled the board and received Falcon report (June 13, 2007).	Accrual occurred at substantial completion (May 1, 2002); Association had time to sue within six years.	Accrual delayed until June 13, 2007 (when unit-owner board had facts to assert claims); claims timely.
Is the discovery rule/equitable tolling available to toll accrual in a condominium association context?	Yes: discovery rule applies; association lacked ability/facts to assert claims until unit owners controlled board and received Falcon report.	No: Sponsors/early documents (Ray report) gave notice; defendants should not face extended exposure.	Yes: discovery rule applies; accrual may be delayed where association lacked control and necessary facts.
Could unit owners have pursued derivative claims earlier, affecting accrual?	Although derivative claims theoretically possible, unit owners were not required to pursue them while sponsor-controlled board; accrual waits until association can act.	Sponsor control and available reports meant actionable claims existed earlier.	The court found it unreasonable to start accrual before unit-owner control; accrual waits until owners control board and have sufficient facts.
Does defendants' concern about "forever liability" negate tolling or delayed accrual?	Association is still bounded by statute of repose; delayed accrual does not create perpetual liability.	Tolling would unfairly expand defendants’ liability beyond expectations.	Tolling/delayed accrual is permissible here; defendants remain protected by the 10-year statute of repose.

Key Cases Cited

Town of Kearny v. Brandt, 214 N.J. 76 (standard of review for summary judgment)
Perini Corp. v. City of Jersey City, 221 N.J. 412 (statute of repose generally starts after substantial completion)
Mahony-Troast Constr. Co. v. Supermarkets Gen. Corp., 189 N.J. Super. 325 (construction-defect claims accrue at substantial completion)
Russo Farms v. Vineland Bd. of Ed., 144 N.J. 84 (accrual principles; use of substantial completion date)
Trinity Church v. Lawson-Bell, 394 N.J. Super. 159 (accrual at substantial completion but discovery rule/equitable exceptions may delay accrual)
Siller v. Hartz Mountain Assoc., 93 N.J. 370 (association has exclusive authority over common-element claims; unit owners may bring derivative suits)
Caravaggio v. D'Agostini, 166 N.J. 237 (plaintiff entitled to full limitations period after accrual even if discovered earlier)
Fox v. Passaic Gen. Hosp., 71 N.J. 122 (limitations period begins when harm is reasonably ascertainable)
Horosz v. Alps Estates, 136 N.J. 124 (purpose of statute of repose to limit expansive discovery-rule liability)
Newark Beth Israel Hosp. v. Gruzen, 124 N.J. 357 (context on limiting contractor liability and repose)

Decision: Reversed the trial court; accrual was delayed until June 13, 2007 (unit-owner control + Falcon report); Association's claims against AJD, Forsa, Benfatto, Luxury were timely and case remanded for further proceedings.