Jan 2018

PALISADES... from page 27.

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nize that unit owners are powerless to protect themselves from the harsh effect of SOL’s prior to transition, the “discovery rule” law that the Court did apply is well settled and known to construction defect practitioners. That part of the Court’s decision is not the concern. What came next is what is alarming. In applying the discovery rule to determine when the clock starting running on the Palisades at Fort Lee Condominium Association’s claims, the Supreme Court held that the knowledge of the association’s predecessor in title, i.e. the Sponsor, was relevant to the inquiry. The Court held that “[a]n owner of a building cannot convey greater property rights to a purchaser than the owner pos- sessed. If the building’s owner knew or reasonably should have known of construction defects at the time of the sale of the property, the purchas- er takes title subject to the original owner’s right—and any limitation on that right—to file a claim against the architect and contractors....if the building’s original owner does not file a construction-defect lawsuit within the six-year limitations period from accrual of an actionable claim, the purchaser taking title has no right to revive a lapsed claim.” The Court then remanded the matter back to the trial court to hold an evidentiary hearing to determine what the Sponsor knew and when the Sponsor knew it. So what does this mean for condo- minium associations? Simply put, if, prior to transition, the Sponsor of your condominium knew or should have

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