S. JAY MIRMANESH VS. STEVEN AND DAWN BRASSLETT (C-000005-12, CAPE MAY AND ATLANTIC COUNTIES AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided May 9, 2019·No. A-5680-16T3·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-5680-16T3

S. JAY MIRMANESH and LISA ANN MIRMANESH, individually and derivatively for WATERVIEW ESTATES CONDOMINIUM ASSOCIATION, INC.,

Plaintiffs-Appellants,

v.

STEVEN and DAWN BRASSLETT, RALPH and CHERYL CALIRI, MARION MACKINNON, and WILLIAM AND LOIS MAGUIRE,

Defendants-Respondents.

Argued February 12, 2019 – Decided May 9, 2019 Before Judges Yannotti, Gilson and Natali.

On appeal from Superior Court of New Jersey, Chancery Division, Cape May and Atlantic Counties, Docket No. C-000005-12.

Paul A. Leodori argued the cause for appellants (Law Offices of Paul Leodori, PC, attorneys; Paul A.

Leodori, on the briefs).

Kathleen Barnett Einhorn argued the cause for respondents Steven and Dawn Brasslett, Ralph and Cheryl Caliri, Marion MacKinnon, and William and Lois Maguire (Genova Burns LLC, attorneys; Angelo J. Genova and Kathleen Barnett Einhorn, of counsel and on the brief; Michael C. McQueeny, on the brief).

Frank L. Corrado argued the cause for respondent Michael A. Fusco (Barry, Corrado, Grassi & Gillin-

Schwartz, PC, attorneys; Frank L. Corrado, on the brief).

PER CURIAM Plaintiffs, S. Jay Mirmanesh and Lisa Ann Mirmanesh, individually and on behalf of the Waterview Estates Condominium Association, Inc. (Association), appeal from the Chancery Division's May 19, 2017 Order that denied their motion to change venue, for leave to file a complaint against the then court-appointed receiver Michael A. Fusco, II, Esq., and for attorney's fees.1 After reviewing the record, the parties' arguments, and the applicable

1 Plaintiffs' notice of appeal indicated they also appealed from the court's January 6, 2014, February 26, 2014, August 18, 2014, and July 28, 2017 orders. Other than seeking to vacate these orders, which we address at pp. 15-17, plaintiffs failed to brief any substantive challenges to those orders. Accordingly, we deem any viable appellate issues waived. Sklodowsky v. Lushis, 417 N.J. Super. 648, 657 (App. Div. 2011) ("An issue not briefed on appeal is deemed waived.").

A-5680-16T3

legal principles, we affirm in part, reverse in part, and remand for further proceedings.

I.

The Association is a non-profit corporation formed pursuant to the New Jersey Condominium Act, N.J.S.A. 46:8B-1 to -7. It operates a five-unit condominium complex located in Ocean City. On January 18, 2012, plaintiffs filed a complaint against defendants, all unit owners at the complex, seeking to enforce a May 15, 2006 Settlement Agreement (Agreement), in which the parties agreed to amend the Association's By-Laws to address issues such as the rotation of officer positions within the Association's Board of Trustees, the allowance of proxy voting, and the repair and maintenance of the Association's common elements.

On November 6, 2013, after a non-jury trial that spanned seven days, in which plaintiffs claimed defendants failed to comply with the Agreement, the court entered an oral decision and concluded that both plaintiffs and defendants violated certain provisions of the Association's Master Deed and By-Laws. The court also denied the parties' requests for counsel fees. The court determined that a fee award would be inappropriate because the court "entered partial judgments in favor of . . . and against" each party. Further, it concluded that

A-5680-16T3

because "each side has contributed to the conflagration of the issues" and engaged "in a little bit of bad faith," a fee award pursuant to the governing documents was unwarranted. The court memorialized its decision in a January 6, 2014 final judgment in which it characterized the legal fees incurred by each defendant as "legitimate expenses of the . . . [A]ssociation," to be satisfied by each party contributing an amount in accordance with his or her respective share in the Association.

The January 6, 2014 order also appointed Fusco as receiver, pursuant to N.J.S.A. 14A:14-2(2)(c).2 Fusco was charged with undertaking "any and all lawful actions as will best and most expeditiously comport the operation of the . . . [A]ssociation with the terms and provisions of the New Jersey Condominium Act, N.J.S.A. 46:8B-1 [to -7] and the [M]aster [D]eed, [B]y-[L]aws[,] and [R]ules/[R]egulations."

Plaintiffs filed a motion for reconsideration on January 27, 2014, and the court heard oral arguments on February 20, 2014. On February 26, 2014, the court entered an order denying reconsideration, but amending the January 6,

2 In its January 6, 2014 order, the court incorrectly relied on N.J.S.A. 14A:14-2. That statute applies to for-profit corporations. Because the Association is a non-profit corporation, N.J.S.A. 15A:14-2 governs the appointment and powers of receivers.

A-5680-16T3

2014 order with respect to the attorney's fees award by ordering that defendants' counsel's fees were to be divided evenly among the four units they each owned. The court also concluded that plaintiffs were to pay their own counsel's fees, "all through the [A]ssociation." On April 7, 2014, plaintiffs filed an appeal from the January 6, 2014 and February 26, 2014 orders.

On June 5, 2014, while plaintiffs' appeal was pending, Fusco filed a motion seeking, among other relief, authority from the court to replace the existing Association Master Deed, By-Laws, Rules and Regulations, and Agreement with new governing documents. Plaintiffs opposed the motion and filed a cross-motion.

The trial court heard oral arguments on July 22, 2014. On August 18, 2014, the trial judge entered an order granting the receiver the authority to replace the existing Master Deed and By-Laws as he deemed appropriate, but stayed the recording of any revised Master Deed and By-Laws pending the resolution of plaintiffs' appeal. On September 17, 2014, plaintiffs amended their notice of appeal to challenge the court's August 18, 2014 order.

In an unpublished decision, we concluded that the court erred in refusing to enforce certain provisions of the Agreement. See Mirmanesh v. Brasslett, No. A-3433-13T (June 23, 2015). Our 2decision remanded the matter for the

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court to consider the parties' proposed amended governing documents, and determine whether they complied with the Agreement. We also vacated the court's August 18, 2014 order because the trial court lacked jurisdiction to enter the order in light of plaintiffs' pending appeal.

On July 6, 2015, plaintiffs filed a motion for attorney's fees and costs incurred with respect to the appeal. We granted the application on July 27, 2015, and awarded plaintiffs $64,460.50 in counsel fees and $8,096.72 in costs, for a total of $72,557.22, to be paid by the Association.

On remand, the parties attempted to agree on revised documents that conformed to the Agreement and our opinion. According to Fusco, "he became convinced that drafts prepared by plaintiffs' counsel significantly exceeded what the [A]greement contemplated." Fusco also concluded that a previous draft of the Association's governing documents prepared by defense counsel was acceptable. Accordingly, on November 2, 2015, Fusco emailed defense counsel and suggested that counsel submit those documents directly to the court for consideration. The email stated:

Now that the "fee issue" is apparently behind us (unless [plaintiffs' counsel] and his staff try to make some further issue out of it), you might wish to give some thought to filing an application with [the court] to approve the "changes" to the existing condominium documentation to comply with the Settlement

A-5680-16T3

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S. JAY MIRMANESH VS. STEVEN AND DAWN BRASSLETT (C-000005-12, CAPE MAY AND ATLANTIC COUNTIES AND STATEWIDE) (S. JAY MIRMANESH VS. STEVEN AND DAWN BRASSLETT (C-000005-12, CAPE MAY AND ATLANTIC COUNTIES AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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