April 2024

WATER, WATER EVERYWHERE... from page 13.

the given time period. In other instances, even if the storm does not exceed the system’s design capacity, the system might not be functioning at maximum capacity if the storm water system has not been maintained properly. Finally, in certain instances, problems with stormwater management systems outside the community either cause water to flood CONTINUES ON PAGE 16 “...the resident must prove that the association’s actions, or failure to act as required, caused the flooding and damage to the resident’s property.” ciation had been making efforts to mitigate the flooding into Ms. Sloan’s unit. There can be many reasons why an association’s stormwater management system cannot keep up with the demands of a particular storm. In certain instances, the amount of rainfall within the community in a given amount of time exceeds the system’s “design capacity”, which is generally defined as the maximum amount of water the original designer expected the system to manage during

The Appellate Division ultimately rejected Ms. Sloan’s request to hold the association automatically responsible for her losses, under a legal theory called res ipsa loquitur. The Appellate Division rejected the claim because Ms. Sloan was not able to prove what was causing the flood ing in the community, or that the association had exclusive control over what was causing the flooding. However, the Appellate Division remanded the matter to the Trial Court, and directed the Trial Judge to make additional findings of fact, and conclusions of law regarding whether the association’s failure to modify the common elements to prevent additional flooding into Ms. Sloan’s unit violat ed the association’s maintenance obligations under the bylaws and the Condominium Act, or the association’s fiduciary duty to Ms. Sloan and the other unit owners. On remand, the Trial Court ultimately held that the association had not violated the bylaws, the Condominium Act, or the association’s fiduciary obligations because the asso

Talk to us about your association’s financial needs. We can help.

Popular Association Banking exclusively serves the community association industry. We offer: • Financing for building repairs and capital improvements. 1 • Competitive fixed rates with terms up to 15 years. • Access to multi-million-dollar FDIC deposit insurance coverage with ICS® and CDARS®. 2

Contact our Mid-Atlantic Relationship Officer today! David Shahrabani, VP 917.656.1156 Toll-free: 800.233.7164 DShahrabani@popular.com

www.popularassociationbanking.com

1. Subject to credit approval. 2. Terms and conditions apply. CDARS and ICS are registered service marks of IntraFi Network LLC. © 2024 Popular Bank. Member FDIC.

14

APRIL 2024