THE HISTORIC COTSWOLD CONDOMINIUM ASSOCIATION, INC. VS.COTSWOLD, LLC.(C-000106-15, BERGEN COUNTY AND STATEWIDE)
A-3424-15T3
| N.J. Super. Ct. App. Div. | Oct 17, 2017Background
- The Historic Cotswold Condominium has 13 residential units and 19 parking spaces; the 2005 master deed treats parking as common elements that may be designated as limited common elements (LCEs) when specified in unit deeds.
- The developer, Cotswold, LLC, sold most units and in some deeds designated parking spaces as LCEs; the by-laws empower the condominium association's board to "establish and enforce Rules and Regulations for parking by and the assignment of parking spaces to Unit Owners."
- Control of the board shifted from the developer to the unit-owner Association in May 2007 after sale of the tenth unit (per the Condominium Act).
- Despite the transfer of control, Cotswold continued to execute deeds assigning parking spaces as LCEs; in January 2015 Cotswold deeded the three remaining unsold units to itself and assigned the remaining eight unassigned parking spaces as LCEs appurtenant to those self-deeded units.
- The Association sued to quiet title, contending the Association (via its board) has authority under the governing documents to assign and control parking spaces and that Cotswold’s 2015 self-dealing conveyances were invalid.
- The trial court granted summary judgment for the Association; the Appellate Division affirmed, concluding the governing documents vest authority over parking assignment with the Association/board once control shifted in 2007.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who controls assignment of parking spaces/LCE designation? | Association: board has power under by‑laws to assign and regulate parking; parking is common element owned by unit owners. | Cotswold: as master-deed sponsor, retains right to assign parking on unsold units and to sell unsold units with LCEs. | Board/Association controls assignment once owner control occurred; Cotswold lacked authority to self-assign remaining parking in 2015. |
| Validity of Cotswold’s January 2015 deeds to itself assigning parking as LCEs | Association: the deeds were self-dealing and invalid because only Association/board could assign parking after control transferred. | Cotswold: its retained rights to sell unsold units included ability to designate LCEs in subsequent deeds. | Deeds were ineffective to transfer control of the common parking because governing documents give assignment authority to Association/board. |
| Effect of master deed and by-laws read together | Association: together they vest board with authority over parking rules and assignments. | Cotswold: master deed’s reservation of rights to developer allows continued designation of LCEs when selling unsold units. | Court: read together, master deed and by-laws vest authority in the board to regulate parking and assign spaces. |
| Standard for granting summary judgment | Association: facts undisputed; legal questions control. | Cotswold: disputed legal interpretation of governing documents requires resolution. | Court: de novo review; no genuine issue of material fact — summary judgment for Association affirmed. |
Key Cases Cited
- Siddons v. Cook, 382 N.J. Super. 1 (App. Div. 2005) (describing condominium creation and governance under the Condominium Act)
- Henry v. N.J. Dep't of Human Servs., 204 N.J. 320 (2010) (appellate de novo review standard for legal issues)
- Manalapan Realty, L.P. v. Manalapan Twp. Comm., 140 N.J. 366 (1995) (standards for judicial review of administrative and legal determinations)
- Liberty Surplus Ins. Corp. v. Nowell Amoroso, P.A., 189 N.J. 436 (2007) (summary judgment standard and Brill framework application)
- Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520 (1995) (standard for summary judgment: whether reasonable minds could differ)