THE OZ CONDOMINIUM ASSOCIATION, INC. VS. OZ, LLC (L-2508-14, HUDSON COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided July 17, 2019·No. A-4154-17T3·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-4154-17T3

THE OZ CONDOMINIUM ASSOCIATION, INC., a New Jersey not-for-profit corporation,

Plaintiff-Appellant,

v. OZ, LLC, and METRO HOMES, LLC, Defendants-Respondents,

and

DEAN S. GEIBEL, ARAM PAPAZIAN, MICHAEL H. SCHWERTFEGER, WATERFRONT MANAGEMENT, SJ CARNEY, UNITED ASPHALT COMPANY, H&C ENTERPRISES, LLC, and 70 ADAMS STREET, LLC,

Defendants.

Argued May 22, 2019 – Decided July 17, 2019 Before Judges Accurso, Vernoia and Moynihan.

On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-2508-14.

Bernadette Condon argued the cause for appellant (Lum, Drasco & Positan, LLC, attorneys; Paul A.

Sandars, III, of counsel and on the briefs; Bernadette Condon, on the briefs).

Sunny M. Sparano argued the cause for respondents (Marshall Dennehey Warner Coleman & Goggin, attorneys; Sunny M. Sparano, of counsel and on the brief; Ian J. Antonoff, on the brief).

PER CURIAM The Oz Condominium Association, Inc. (plaintiff or Association), appeals from the Law Division's February 7, 2018 order, which granted summary judgment in favor of defendants Oz, LLC (Oz LLC), and Metro Homes, LLC (Metro Homes), on plaintiff's claims for damages due to water leakage allegedly resulting from defects in the design, construction, and repair of the Oz Condominium (Condominium) building. We affirm.

I.

We discern the following material undisputed facts from the record before the motion court and view the facts and all reasonable inferences therefrom in

A-4154-17T3

the light most favorable to plaintiff, the non-moving party. 1 R. 4:46-2(c); Bauer v. Nesbitt, 198 N.J. 601, 605 n.1 (2009).

The Condominium is a five-story building located in Hoboken that contains fifty-four residential units and one commercial unit. Plaintiff "is a non- profit condominium [association] formed pursuant to the New Jersey Condominium Act." Plaintiff is responsible for the maintenance, management, and operation of the Condominium's common elements.

Dean S. Geibel is an owner and member of Oz LLC, Metro Homes, and Waterfront Management (Waterfront). Oz LLC was the registered Sponsor of the Condominium. Metro Homes was an entity established for the branding and marketing of Geibel's various projects, including the Condominium. Waterfront acted as the property manager for the Association from 2004 until the

1 We limit our findings of the undisputed facts to those presented in the statements of material fact and opposition submitted to the court in accordance with Rule 4:46-2(a) and (b), and do not consider or rely on information, evidence, and purported facts that were not presented to the motion court in accordance with the Rule. See Kenney v. Meadowview Nursing & Convalescent Ctr., 308 N.J. Super. 565, 573 (App. Div. 1998) (refusing to consider "factual assertions in [the] appeal that were not properly included in the motion . . . for summary judgment below" pursuant to Rule 4:46-2). As such, we reject the parties' reliance on any purported facts that were not included in their Rule 4:46- 2(a) and (b) statements and that are asserted for the first time on appeal, even if supported by citation to deposition transcripts that were included in the record presented to the motion court.

A-4154-17T3

Association terminated its agreement with Waterfront in 2013 and retained a new property manager. Nick Colvin served as property manager of the Condominium from July 2004 through 2009. Colvin testified Metro Homes paid for some repairs to the Condominium from 2004 through 2008 to 2009.

Pursuant to its bylaws, the Association is governed by a board consisting of three trustees who were initially appointed by the Sponsor. The bylaws also provide that within sixty days of the sale of seventy-five percent of the Condominium units, the Association trustees shall be elected by the unit owners, excluding the Sponsor. Seventy-five percent of the units were sold on November 3, 2003, and one hundred percent of the units were closed as of February 15, 2004. The City of Hoboken issued a temporary certificate of occupancy (TCO) for the Condominium on March 26, 2004.

Plaintiff filed suit against Oz LLC, Metro Homes, and several individuals and companies in June 2014 for alleged design and construction deficiencies in the Condominium's roof and exterior that resulted in water leakage and required extensive repairs. Plaintiff's fourth amended complaint asserted claims against Oz LLC and Metro Homes in Counts One through Five, Twelve, and Seventeen through Twenty-two for negligence, breach of express warranties, breach of implied warranties, breach of fiduciary duty, equitable reformation of the Master

A-4154-17T3

Deed, breach of fiduciary duty (budget), violations of the New Jersey Condominium Act, N.J.S.A. 46:8B-1 to -38, violations of the Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 to -210, declaratory judgment regarding the property's storage room, and budget violations under the Planned Real Estate Development Full Disclosure Act (PREDFDA), N.J.S.A. 45:22A-21 to -56, as well as breaches of PREDFDA warranties. 2 Oz LLC and Metro Homes moved for summary judgment, arguing the statute of repose, N.J.S.A. 2A:14-1.1(a), barred all of plaintiff's claims because they pertained to the design or construction of the Condominium and were filed more than ten years after substantial completion of the Condominium. Plaintiff opposed the motion, arguing the exception to the statute of repose, which exempts claims against parties "in actual possession and control . . . of the

2 Count Twelve of the fourth amended complaint seeks equitable reformation of the Condominium's Master Deed to re-compute the commercial unit's percentage interest in the common expenses as to defendants Oz LLC, Metro Homes, Geibel and 70 Adams Street, LLC, the current owner of the commercial unit. Count Twenty-Two seeks a declaratory judgment that the storage room in the Condominium is not a limited common element of the commercial unit, but a common element of the Association. Both counts pertain to the rights and expenses of 70 Adams Street, LLC. The motion court declined to reform the Master Deed or render a declaratory judgment regarding the storage space. Plaintiff does not challenge on appeal the court's order dismissing these counts as to Oz LLC and Metro Homes.

A-4154-17T3

improvement at the time the defective and unsafe condition . . . constitutes the proximate cause of the . . . damage," N.J.S.A. 2A:14-1.1(a), applied because Geibel's companies—Oz LLC, Metro, and Waterfront—together exercised de facto control over the Condominium and "were running the ship." 3 Plaintiff also argued defendants performed repairs on the common elements and, as a result, the limitations period under the statute of repose began anew.

The court heard oral argument, permitted the parties to submit supplemental briefs, issued an order granting summary judgment to Oz LLC and Metro Homes, and subsequently filed a written opinion. The court found the undisputed facts established defendants are separate entities, the statute of repose barred all of plaintiff's claims, and plaintiff failed to establish the requisite level of possession or control by defendants necessary to invoke the exception to the statute of repose. N.J.S.A. 2A:14-1.1(a). With regard to plaintiff's claim that repairs to the Condominium triggered a new ten-year limitations period under the statute of repose, the court found that, regardless of when a roof repair was made and whether it was an "improvement to real

3 Waterfront was not a party to the summary judgment motion and was represented by separate counsel from that of Oz LLC and Metro Homes.

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THE OZ CONDOMINIUM ASSOCIATION, INC. VS. OZ, LLC (L-2508-14, HUDSON COUNTY AND STATEWIDE) (THE OZ CONDOMINIUM ASSOCIATION, INC. VS. OZ, LLC (L-2508-14, HUDSON COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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