Paradise Park Homeowners Ass'n, Inc. v. Riverdale Mgmt. Associates

961 A.2d 752, 404 N.J. Super. 309
CourtNew Jersey Superior Court Appellate Division
DecidedDecember 24, 2008
DocketDOCKET NO. A-5593-06T1
StatusPublished
Cited by1 cases

This text of 961 A.2d 752 (Paradise Park Homeowners Ass'n, Inc. v. Riverdale Mgmt. Associates) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paradise Park Homeowners Ass'n, Inc. v. Riverdale Mgmt. Associates, 961 A.2d 752, 404 N.J. Super. 309 (N.J. Ct. App. 2008).

Opinion

961 A.2d 752 (2008)
404 N.J. Super. 309

PARADISE PARK HOMEOWNERS ASSOCIATION, INC., a corporation of the State of New Jersey; Loretta Dibble, President of the Paradise Park Homeowners Association and owner of 32 Paradise Park, Highlands, N.J.; Francis Wolzein and Dawn Wolzein, owners of 30 Paradise Park; Francis Gorman, formerly the owner of 31 Paradise Park; and Mary Ince, formerly the owner of 48 Paradise Park, Plaintiffs-Appellants,
v.
RIVERDALE MANAGEMENT ASSOCIATES, a partnership of the State of New Jersey; Donald E. Somers, General Partner of Riverdale Management Associates; Lisa McGuire, General Partner of Riverdale Management Associates; Jeff Somers, General Partner of Riverdale Management Associates; Navesink Capital Partners, LLC, a limited liability company of the State of New Jersey, James Bollerman, individually and in his official capacity with Navesink Capital Partners, LLC, Defendants-Respondents, and
Martin Barger, Esq., an attorney-at-law of the State of New Jersey; Gary Edelson, a suspended attorney-at-law of the State of New Jersey;[1] and Nationwide Property Transfer Services, LLC, a limited liability company of the State of New Jersey, Defendants, and
Sandy Hook Developers, LLC, a limited liability company of the State of New Jersey, Defendant/Intervenor-Respondent.

DOCKET NO. A-5593-06T1

Superior Court of New Jersey, Appellate Division.

Argued October 23, 2008.
Decided December 24, 2008.

*754 William H. Eaton, Atlantic Highlands, argued the cause for appellants (Korona, Beides & Eaton, attorneys; Mr. Eaton, on the brief).

Christopher J. Hanlon, argued the cause for respondents Riverdale Management Associates, Donald E. Somers, Jeff Somers and Lisa McGuire (Hanlon & Niemann, attorneys, Freehold; Mr. Hanlon, on the brief).

Donald M. Lomurro, Freehold, argued the cause for respondents Navesink Capital Partners, James Bollerman and intervenor-respondent Sandy Hook Developers (Lomurro, Davison, Eastman & Munoz, attorneys; Michael J. Fasano, on the brief).

Before Judges WINKELSTEIN, FUENTES and GILROY.

The opinion of the court was delivered by

FUENTES, J.A.D.

Plaintiff Paradise Park Homeowners Association, Inc. ("the Association"), is a New Jersey corporation formed to represent the residents of the Paradise Park mobile home park ("the Park") located in the Borough of Highlands, New Jersey. The individually named plaintiffs, Loretta Dibble, Francis Wolzein, Dawn Wolzein, Francis Gorman, and Mary Ince, are owners or former owners of mobile homes situated on leased lands within the Park. The Association was formed in accordance with the Mobile Home Protection Act ("the Act"), N.J.S.A. 46:8C-2 to -21. Under certain circumstances, the Act grants mobile home park residents a right to certain notices triggered by the sale of the property, and a concomitant right of first refusal. N.J.S.A. 46:8C-11; N.J.S.A. 46:8C-12.

Defendants Donald E. Somers, his daughter Lisa McGuire, and his son Jeff Somers are general partners of Riverdale Management Associates ("Riverdale Management"). This group owned the Park until March 2005 when they sold it to defendant James Bollerman and his company Navesink Capital Partners, LLC ("Navesink Capital").

Defendants did not notify plaintiffs of the sale as required by the Act because they asserted that the sale fell under the Act's exemption contained in N.J.S.A. 46:8C-13(a), that is, any sale "not made in contemplation of changing the property to a use or uses other than as a private residential leasehold community."

Plaintiffs commenced this action seeking enforcement of their right of first refusal under the Act, specific performance, to quiet title, and other related remedies. Before engaging in extensive discovery, both parties moved for summary judgment, arguing that the case was ripe for *755 disposition as a matter of law. The trial court agreed. After hearing oral argument, the judge granted defendants' motion and dismissed the complaint. The court held that plaintiffs had not established that the sale was made "in contemplation" of changing the use of the property as a mobile home park.

Plaintiffs now appeal, arguing that the trial court erroneously limited the focus of its analysis to the terms of the contract for sale, thereby ignoring a plethora of evidence showing defendants' true state of mind. Specifically, plaintiffs argue that the trial court should have considered Bollerman's conduct during contract negotiations in light of his attempts to change the property's zoning scheme to permit high-end residential development. According to plaintiffs, this, together with Somers's refusal to modify the contract to reflect the buyers' true future intent, amounted to clear evidence that the sale was made "in contemplation" of changing the property's use as a mobile home park.

Defendants argue that the trial court correctly found that plaintiffs' alleged evidence concerning the parties' conduct during pre-contract negotiations amounted to nothing more than mere speculation. Under these circumstances, defendants' assert that the trial court properly found that the terms of the contract were the best indicator of the parties' state of mind.

Thus framed, we are required to determine whether the sale of this mobile home park triggered the rights conferred by the Legislature to residents of these communities in N.J.S.A. 46:8C-11 or N.J.S.A. 46:8C-12. As a corollary to this analysis, we are also required to determine whether defendants are entitled to invoke the exemption outlined in N.J.S.A. 46:8C-13(a) as a complete defense to plaintiffs' action.

We now hold that summary judgment in favor of defendants and against plaintiffs was improvidently granted. In adopting the Mobile Home Protection Act, the Legislature intended to protect the continuation of mobile home communities, and to promote and encourage ownership and self-governance by the residents of these communities. Toward that end, when an owner of a mobile home park decides to sell, or receives a bona fide offer to buy, the residents of mobile home communities are statutorily entitled to a right of first refusal. N.J.S.A. 46:8C-11; N.J.S.A. 46:8C-12.

Under N.J.S.A. 46:8C-13(a), a seller may claim that the transaction is exempt from this statutory scheme because the sale was not made "in contemplation" of changing the use of the property as a mobile home community. We now define the term "in contemplation" of changing the use as denoting a state of mind involving less commitment to action than would an "intent" to change the use. In this context, we further hold that a seller invoking such an exemption must have a rational, good faith basis to believe, under all of the attendant circumstances, that the sale was not made "in contemplation" of changing the use of the property.

Based on the evidence presented to the trial court, we are satisfied that a rational factfinder could find that Somers, as the seller, did not have a good faith basis to invoke the exemption in N.J.S.A. 46:8C-13(a). We thus reverse the trial court's grant of summary judgment and remand.

I

Paradise Park is located at the foot of Locust Street, between the Sandy Hook Bay Marina and the Borough of Atlantic Highlands. As of 2004, the Park totaled approximately 3.776 acres, and contained fifty-eight existing spaces for mobile homes and three "stick-built" homes, for a *756 total of sixty-one housing units. The property has been used as a mobile home park for more than fifty years.

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