NJ Legal News: New Jersey Court Rescues Associations

Jul 10, 2015

Mark Wiechnik, Esq. and Breanne DeRaps, Esq. of CAI member business partner Ansell Grimm & Aaron, P.C. secured a resounding victory for condominium associations and homeowners across New Jersey.

In a published (and precedential) decision the New Jersey Appellate Division found that construction defects and faulty workmanship that cause damage to other property is a covered event under the General Contractor’s general liability insurance policies. The decision in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC., et al., confirmed that associations plagued by defective roofs, brick, siding and other defects which allow water to intrude and cause damage now have a source of recovery from the General Contractor’s insurance. Prior to this decision, there had been no determination by any appellate court in New Jersey on this issue. In fact, the only reported relevant case until now often killed a community’s or building’s attempt to cure construction defects and/or faulty workmanship, because it found that a General Contractor’s policy could not be triggered by any damage to the building/common elements in question. Mark and Breanne successfully convinced this court to soundly reject that position.

It is common in New Jersey that General Contractors form single-purpose entities that have little or no assets or means to pay a judgment. Thus, absent insurance coverage for the General Contractor, an association is often left without a way to recover the funds necessary to fix construction defects and/or faulty workmanship. The confirmation that insurance coverage exists represents a significant step forward in protecting the rights of associations and homeowners when they are faced with construction defects and faulty workmanship. 

This post is excerpted from Ansell Grimm & Aaron, P.C.'s website. The full post can be read by clicking here.   

For more information, please contact Ansell Grimm & Aaron, P.C. at:
Mark Wiechnik, Esq.   |   mmw@ansellgrimm.com
Breanne DeRaps, Esq. |   bmd@ansellgrimm.com 

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