August 2024 CT

Community Associations + Civil Litigation: A Primer By John S. Prisco, Esq., EBP, Becker

I f you are a community association board member or man ager, chances are that at some point you are going to be involved in a legal dispute. It’s simply an occupational hazard. From transition issues such as construction defects with the developer, to collections matters, rule enforcement, and even potentially employment disputes, community asso ciations are constantly facing legal challenges. Given that community associations can be hotbeds for legal disputes, it’s critical for board members and manag ers to be familiar with the litigation process. Understanding the key concepts and procedures of litigation will help board members and managers: • Make better, informed decisions. Understanding the legal landscape and procedures will greatly assist board members and managers in better understanding, evaluating, and acting upon counsel’s recommendations and legal advice. • Communicate effectively with homeowners. If a board member or manager understands the litigation process, they will be better suited to communicate effectively with homeowners about legal matters. This can help to pre vent misunderstandings and disputes. • Build trust with homeowners. When homeowners see that board members and managers are knowledgeable about the legal process, they are more likely to trust them to make sound decisions. This can help to build unit, even during conflict. From initiating suit to appeals, read on to learn more about the civil litigation in New Jersey:

Filing the Lawsuit – The Pleading Stage A lawsuit begins with the filing of a complaint by a plain tiff. This first stage is referred to as the “pleading” phase. The plaintiff is the person who thinks they have been wronged and wants the court to help them. The defendant is the person who is accused of doing something wrong and must defend themselves against the plaintiff’s claims. Here’s an example: Plaintiff: A homeowner who is suing their community association because they believe the association did not properly maintain the common roof that caused damage to the Plaintiff’s unit. Defendant: The community association, which is being accused of not properly maintaining the common roof. To have a viable claim, a plaintiff will need to file their complaint, depending on the specific type of claim or claims, within a specified time after the plaintiff’s claim “accrued” or in other words from the time the plaintiff had knowledge that a claim existed. Every state has what are called “statutes of limitation” that place time limits on different categories of claims. In New Jersey a personal injury claim has a two-year statute of limitations period. Contract and construction defect claims must generally be filed within six years However, New Jersey has what’s called the “discovery rule,” which essentially pauses the statute of limitations until the plaintiff obtains knowledge or with reasonable dili gence should have obtained knowledge that a claim exists. The discovery rule is a plaintiff-friendly equitable doctrine CONTINUES ON PAGE 28

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AUGUST 2024