{"id":903841,"date":"2025-01-21T15:55:54","date_gmt":"2025-01-21T22:55:54","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903841"},"modified":"2025-01-21T15:55:55","modified_gmt":"2025-01-21T22:55:55","slug":"summary-judgment-remanded-due-to-dispute","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/summary-judgment-remanded-due-to-dispute\/","title":{"rendered":"Summary Judgment Remanded Due To Disputed Facts On HOA&#8217;s Right To Enforce Building Restrictions"},"content":{"rendered":"\n<p>Michael O&#8217;Donnell, Matthews A. Florez, Kori Pruett and Shelley Wu | <a href=\"https:\/\/riker.com\/blog\/banking-title-insurance-and-real-estate-litigation\/summary-judgment-remanded-due-to-disputed-facts-on-hoas-right-to-enforce-building-restrictions\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Riker Danzig<\/a><\/p>\n\n\n\n<p><strong>What You Need to Know<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Importance of Fact-Finding<\/strong>. The case underscores the need for proper fact-finding. The Appellate Court remanded the case for further hearings, citing unresolved factual issues like the reasonableness and enforceability of the height restrictions and whether the home complied with FEMA flood elevation standards.<\/li>\n\n\n\n<li><strong>Summary Judgment Standard<\/strong>. The case illustrates the importance of having a complete and well-developed factual record when seeking summary judgment, as material factual disputes prevent the resolution of legal issues at that stage.<\/li>\n<\/ul>\n\n\n\n<p><strong>Introduction<\/strong><\/p>\n\n\n\n<p>In a recent case from the New Jersey Appellate Division, the Court remanded an order granting <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/price-escalation-clause-dispute-summary-judgment\/\">summary judgment<\/a>, finding that the record contained disputed material facts where a property owner contested a homeowners\u2019 association\u2019s authority to enforce building height restrictions.<\/p>\n\n\n\n<p><strong>Background<\/strong><\/p>\n\n\n\n<p>Plaintiffs John and Janice Gross own a home (the \u201cProperty\u201d) within a private residential community governed by a homeowners\u2019 association (the \u201cOBS Club\u201d) in the Township of Toms River. In the late 1940s, their Property was part of a larger tract of land owned by the Patnaudes family, who subdivided the land and sold hundreds of parcels in deeds containing restrictions and covenants, many of which became part of the residential community today.<\/p>\n\n\n\n<p>The Grosses\u2019 chain of title for the Property included three sales. First, in 1947, the Property was sold from the Patnaudes to the Fitzpatricks, subject to restrictions and conditions in the deed, which was duly recorded (the \u201cGenesis Deed\u201d). Next, in 1964, the Fitzpatricks sold the Property to the O\u2019Keefes, subject to covenants and conditions contained in the prior deeds of record. Finally, in 1980, the Grosses purchased the Property from the O\u2019Keefes, subject to covenants and conditions in the prior deeds of record.<\/p>\n\n\n\n<p>The 1947 Genesis Deed included three major restrictions: (1) a restriction that all the property owners in the community must join the property owners\u2019 association and abide by its rules; (2) restrictions on the front, back, and side setbacks for dwellings, and a width restriction; and (3) a general restriction stating that \u201c[n]o building, alteration, or addition shall be made without the written approval of [the property owners\u2019 association].\u201d Notably, the Genesis Deed provided that the property owner would be \u201crequired to be members of a property owners&#8217; association known or to be known as \u2018OCEAN BEACH CLUB\u2019 and to faithfully abide by its rules.\u201d<\/p>\n\n\n\n<p>In 1948, the OBS Club was incorporated, and it adopted by-laws with the goal of \u201cpromoting and protecting the general welfare and property rights of the property owner members in their use and enjoyment of their property\u201d in the community. According to the by-laws, any person or group of persons will become members of the OBS Club \u201con the date of acquisition of title to the property\u201d in the community. In 1989, the OBS Club amended its by-laws to impose building height restrictions on certain buildings in the community, and in 2014, it adopted construction rules requiring approval before any type of construction or demolition activities.<\/p>\n\n\n\n<p>Between October 2020 and May 2021, the Grosses submitted building plans to the OBS Club, seeking approval to construct a new single-family residence on their property in compliance with Federal Emergency Management Agency (\u201cFEMA\u201d) regulations and local ordinances. The OBS Club denied their application due to its height restrictions. When the parties could not reach an agreement over the building plans, the Grosses sued, seeking injunctive relief declaring that the OBS Club did not have the authority to impose and enforce building restrictions on their property.<\/p>\n\n\n\n<p>After hearing arguments, the Chancery Court granted partial summary judgment in favor of the Grosses, declaring that the Property was not subject to the OBS Club\u2019s height restrictions.<\/p>\n\n\n\n<p><strong>Appeal<\/strong><\/p>\n\n\n\n<p>On appeal, the central issue was whether the OBS Club had the authority to adopt building restrictions beyond the restrictions contained in the Genesis Deed. The OBS Club argued that it is and always has been the property owners\u2019 association referenced in the 1947 Genesis Deed. Additionally, it argued that there were genuine issues of material fact regarding its authority to impose height restrictions, making the issue inappropriate for summary judgment. During the pendency of the appeal, the township approved the Grosses\u2019 construction plan and the house was built at a height greater than the OBS Club\u2019s height restriction. &nbsp;The OBS Club argued that the Chancery Court failed to consider the language of the Genesis Deed and made factual findings on disputed issues.<\/p>\n\n\n\n<p>The Appellate Division first addressed whether the OBS Club is the property owners\u2019 association referred to in the Genesis Deed and whether the OBS Club could enact additional restrictive covenants by analyzing the language of the Genesis Deed and the factual record.<\/p>\n\n\n\n<p>There, the Court noted that the Genesis Deed expressly contemplated a homeowners\u2019 association that could establish any rules or regulations it chooses, and that building alterations or additions could not be made without the approval of the association. The Court recognized that on summary judgment, all facts must be construed in favor of the non-moving party, which required accepting OBS Club\u2019s factual contention that it was the association referenced in the Genesis Deed. While it was unclear whether the Grosses dispute that OBS Club is the association referenced in the Genesis Deed, they did dispute the Club\u2019s right to adopt restrictions beyond what was expressly provided in the Deed.<\/p>\n\n\n\n<p>In that vein, the Court found the existing record on appeal left critical factual issues unresolved, including whether OBS Club was the recognized homeowners\u2019 association and whether it had the authority to impose additional height restrictions. The Court also reasoned that the Chancery Court failed to consider whether the height restriction was reasonable and enforceable against the Grosses, and remanded for a fact-finding hearing.<\/p>\n\n\n\n<p>Additionally, after supplemental briefing, the Appellate Division determined that factual issues exist concerning whether the new home complies with the FEMA flood elevation standard, and whether OBS Club\u2019s height standards are enforceable against the home that is now built. As such, the Court reversed, vacated, and remanded the Chancery Court\u2019s orders with instructions to resolve these issues on remand through an evidentiary hearing or trial.<\/p>\n\n\n\n<p><strong>Takeaways<\/strong><\/p>\n\n\n\n<p>This case highlights the importance of developing the factual record and understanding the standard required for summary judgment. Here, many disputed material facts existed that prevented both the trial and appeals court from appropriately resolving the issues based on the record before it.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michael O&#8217;Donnell, Matthews A. Florez, Kori Pruett and Shelley Wu | Riker Danzig What You Need to Know Introduction In a recent case from the New Jersey Appellate Division, the Court remanded an order granting summary judgment, finding that the record contained disputed material facts where a property owner contested a homeowners\u2019 association\u2019s authority to&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/summary-judgment-remanded-due-to-dispute\/\">Continue reading <span class=\"screen-reader-text\">Summary Judgment Remanded Due To Disputed Facts On HOA&#8217;s Right To Enforce Building Restrictions<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172],"tags":[9895,27,8901],"class_list":["post-903841","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","tag-advise-consult","tag-construction-law","tag-summary-judgment","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Summary Judgment Remanded Due To Disputed Facts On HOA&#039;s Right To Enforce Building Restrictions - Advise &amp; 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