Eric Gerstmann v. Executive House Condominium Association, Inc.

New Jersey Superior Court Appellate Division·Decided January 17, 2025·No. A-0860-22·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-0860-22

ERIC GERSTMANN, JANINE LUPPINO, and RONALD LUPPINO,

Plaintiffs-Appellants,

and

ALI VEDARARZ, SHIRIN VEDARARZ, ROSALINDA PALAD, CYNTHIA AGNESE, ROEL PEREZ, YURIDIA PENA, CAROL VILLAVICENCIO, and MONICA TOGARU,

Plaintiffs,

v.

EXECUTIVE HOUSE CONDOMINIUM ASSOCIATION, INC., EXECUTIVE HOUSE CONDOMINIUM BOARD OF DIRECTORS, MARLENE COSTAGLIOLA, JIM O'CONNOR, IRA GOODMAN, KAREN ANDERSON, NANCY WYMER, ALTICE USA, d/b/a CABLEVISION SYSTEMS CORPORATION, and OPTIMUM,

Defendants-Respondents.

Submitted January 10, 2024 – Decided January 17, 2025 Before Judges Gummer and Walcott-Henderson.

On appeal from the Superior Court of New Jersey, Chancery Division, Bergen County, Docket No.

C-000003-22.

Jared M. Lans & Associates, attorneys for appellants (Jared M. Lans and Nicholas G. Gallinger, on the briefs).

Kirmser, Lamastra, Cunningham & Skinner, attorneys for respondents Executive House Condominium Association, Inc., Executive House Condominium Board of Directors, Marlene Costagliola, Jim O'Connor, Ira Goodman, Karen Anderson and Nancy Wymer (Timothy P. Malacrida, of counsel and on the brief).

Lester Schwab Katz & Dwyer, LLP, attorneys for respondent Altice USA d/b/a Cablevision Systems Corporation and Optimum (Alfredo Javier Alvarado, on the brief).

The opinion of the court was delivered by GUMMER, J.A.D.

In this condominium-association dispute, plaintiffs Eric Gerstmann, Janine Luppino, and Ronald Luppino challenged the authority of the condominium's association and board of directors to enter into bulk-billing agreements with a cable-television provider. They appeal from two summary-

A-0860-22

judgment orders entered in defendants' favor. Having conducted a de novo review, we affirm.

I.

We draw these facts from the summary-judgment record, "view[ing] the evidence in the light most favorable to [plaintiffs,] the non-moving part[ies]." Comprehensive Neurosurgical, P.C. v. Valley Hosp., 257 N.J. 33, 71 (2024) (first alteration in original) (quoting Qian v. Toll Bros., Inc., 223 N.J. 124, 134- 35 (2015)).

The Executive House Condominium is a multi-unit building located at 301 Beech Street in Hackensack. It consists of 127 residential units and four commercial units. The Executive House Condominium Association, Inc. (Association) is governed by its Board of Directors. Defendants Marlene Costagliola, James O'Connor, Ira Goodman, Nancy Wymer, and Karen Anderson became Board members in 2007, 2015, 2011, 2017, and 2016, respectively, and were Board members when plaintiffs filed this lawsuit. We refer to the Association, the Board, and the Board members collectively as the Executive House defendants.

Under the Association's Articles of Incorporation, the Association is permitted to exercise powers and perform duties as set forth under the

A-0860-22

condominium Master Deed and the Association's By-Laws (collectively the Governing Documents) and granted by statute. According to the By-Laws, the Association was "formed to serve as means through which the condominium unit owners . . . may take action with regard to the administration, management, repair and operation of the Property, in accordance with the provision s of a master deed . . . ."

Article IV, Section 2 of the By-Laws outlines the Board's powers and duties and states:

The Board . . . shall have the powers and duties necessary for the administration of the affairs of the Association and may do all such acts and things, except as by law or by the Master Deed or by these By-Laws, may not be delegated to the Board . . . by Unit Owners.

Such powers and duties of the Board . . . shall include but shall not be limited to the following:

(a) The operation, care, upkeep, repair and replacement of the Common Elements and services and personal property of the Association, if any, together with the right to use all funds collected by the Association to effectuate the foregoing.

(b) Determination of the Common Expenses required for the affairs and duties of the Association

....

The Board . . . shall, prior to the beginning of each fiscal year of the Association, prepare a budget which shall determine the amount of common charges payable by each Unit to meet the Common Expenses of

A-0860-22

the Association . . . . The Board . . . shall allocate and assess such charges among the Unit Owners according to and in the percentage of their respective ownership of Common Elements as set forth in the Master Deed.

Unit Owner shall be advised of the amount of the Common Expenses payable by each of them and these charges shall be paid to the Association in twelve (12)

equal monthly installments on the 1st day of each month of the fiscal year in advance at the office of the Association. A statement of the aforesaid yearly charges shall be mailed to each Unit Owner at the commencement of each fiscal year and no further billing by the Association shall be required.

....

(c) Collection of the Common Expenses and assessments from the Unit Owners together with any costs and expenses of collection thereof.

....

(s) To have and to exercise any and all powers, rights and privileges which a corporation organized under the nonprofit Corporation Law of the State of New Jersey by law may now or hereafter have or exercise.

Paragraph (b) of Section 2 includes the following limitation of the Board's authority:

Anything in these By-Laws or elsewhere to the contrary notwithstanding, the Board . . . shall not have the authority, except in the case of an extreme emergency, without the consent of the Unit Owners holding majority of the shares in the Common Elements to expend in excess of $5,000, on any item of expense

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in any year in which it is not specified or if specified, over the amount indicated for such item in the aforesaid budget for such year.

Under the Master Deed, the Association is "comprised exclusively of Unit Owners to effect the management, maintenance, repair and replacement of the Property pursuant to the [New Jersey Condominium] Act [(N.J.S.A. 46:8B-1 to -38) (the Act)], this Master Deed and the 'By-Laws.'" Paragraph 27 of the Master Deed, which is entitled "Ratification, Confirmation and Approval of Agreements," provides, among other things, that:

The purchase of a Unit, and the acceptance of a deed therefor by any party shall constitute the ratification, confirmation and approval by such purchaser, his heir, legal representative, successors and assigns of the propriety and legality of said agreement or said agreements, or any other agreements authorized and permitted by the Act, this Master Deed and the By-

Laws.

The Master Deed defines "Common Elements" as "all parts of the Property other than the Units, including the items set forth in the Condominium Act, excluding the Unit or Units for janitor and/or superintendent." Pursuant to the Master Deed, each unit owner is required to pay "Common Expenses," meaning the owner's "proportionate share of all the expenses of maintenance, repair, replacement, administration and operation of the Common Elements." A unit owner's "proportionate share" of the Common Expenses is "the same as the A-0860-22

proportionate, undivided interest of the Unit Owner in the Common Elements as set forth in" the Master Deed. Regarding utilities, paragraph 15 of the Master Deed provides: "Each Unit Owner shall pay for his own telephone and cable television and other utilities which are separately metered or billed to each user by the respective utility company. Utilities which are not separately metered or billed shall be treated as part of the Common Expense charges."

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