Homeowners’ associations in New Jersey should review their governing documents in light of a recent decision by the Appellate Division of the New Jersey Superior Court.
Homeowners’ associations in New Jersey should review their governing documents in light of a recent decision by the Appellate Division of the New Jersey Superior Court. In Sylvan Glade Condominium Association v. Avi Braude, the appeals court affirmed a lower court decision holding that the condominium association was not entitled to post-judgment collection costs because its governing documents did not expressly provide for them.
The Facts of the Case
Plaintiff, Sylvan Glade Condominium Association, d/b/a Mapleleaf Park Association, Inc., obtained a final default judgment against defendant, Avi Braude, a unit owner in the plaintiff’s condominium, after he failed to pay his monthly fees. The New Jersey condominium association later sought to amend the judgment to include an award of post-judgment attorneys fees, which were incurred exclusively in connection with its efforts to collect on the judgment.
In support of it motion, the plaintiff cited its condominium documents, which entitled it to collect “reasonable attorneys fees” against a delinquent unit owner, New Jersey’s Condominium Act, and the Appellate Division’s holding in Tanksley v. Cook, which held that New Jersey’s Consumer Fraud Act entitled plaintiff to an award of post-judgment attorneys fees.
The defendant opposed the motion. He argued that it would be unfair to add additional post-judgment attorneys fees to the amount that was entered as part of the final judgment because he had already confirmed with plaintiff’s attorney the amount necessary to satisfy the judgment, borrowed money, and in fact “redeem[ed] the property” by having “paid and satisfied in full” the judgment.
The Trial Court’s Decision
Judge E. David Millard denied the motion. In so ruling, the judge rejected plaintiff’s reliance on Tanksley, distinguishing a consumer fraud claim from an attempt by a condominium association to collect post-judgment attorneys fees.
With regard to the Condominium Act, judge Millard agreed that the statute allows for an association to collect attorneys fees. However, citing the Appellate Division’s decision in Hatch v. T & L Associates, he concluded that without the condominium documents expressly providing for post-judgment collection fees, the judgment could not be amended. As Judge Millard explained:
I’m not saying that a . . . Condo Association, can’t collect post-judgment fees, attorney fees. What I am saying is you need to spell it out in your Condo Association [documents,] the notice that people get when they join the Association so that they know that they are potentially on the hook for that, if they don’t make the payment.
I’m not satisfied that you’ve done that. The generic language in the Condo Association [documents] does not include or would not put somebody on notice . . . of such post-judgment attorneys fees.
The Appellate Division’s Decision
The appeals court affirmed the trial court’s ruling in a per curium decision, which relied almost exclusively on the reasoning of the judge below. “We affirm, finding plaintiff’s arguments to be without sufficient merit to warrant further discussion in a written opinion… essentially for the reasons stated by Judge Millard in his oral decision,” the panel stated.
The Appellate Division added only the following: “It was not disputed … that the condominium documents did not mention ‘post-judgment’ collection costs, including attorneys fees.”
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Condominium Docs Need Authorize Post-Judgment Collection Fees
Author: Scarinci Hollenbeck, LLC
Homeowners’ associations in New Jersey should review their governing documents in light of a recent decision by the Appellate Division of the New Jersey Superior Court.
Homeowners’ associations in New Jersey should review their governing documents in light of a recent decision by the Appellate Division of the New Jersey Superior Court. In Sylvan Glade Condominium Association v. Avi Braude, the appeals court affirmed a lower court decision holding that the condominium association was not entitled to post-judgment collection costs because its governing documents did not expressly provide for them.
The Facts of the Case
Plaintiff, Sylvan Glade Condominium Association, d/b/a Mapleleaf Park Association, Inc., obtained a final default judgment against defendant, Avi Braude, a unit owner in the plaintiff’s condominium, after he failed to pay his monthly fees. The New Jersey condominium association later sought to amend the judgment to include an award of post-judgment attorneys fees, which were incurred exclusively in connection with its efforts to collect on the judgment.
In support of it motion, the plaintiff cited its condominium documents, which entitled it to collect “reasonable attorneys fees” against a delinquent unit owner, New Jersey’s Condominium Act, and the Appellate Division’s holding in Tanksley v. Cook, which held that New Jersey’s Consumer Fraud Act entitled plaintiff to an award of post-judgment attorneys fees.
The defendant opposed the motion. He argued that it would be unfair to add additional post-judgment attorneys fees to the amount that was entered as part of the final judgment because he had already confirmed with plaintiff’s attorney the amount necessary to satisfy the judgment, borrowed money, and in fact “redeem[ed] the property” by having “paid and satisfied in full” the judgment.
The Trial Court’s Decision
Judge E. David Millard denied the motion. In so ruling, the judge rejected plaintiff’s reliance on Tanksley, distinguishing a consumer fraud claim from an attempt by a condominium association to collect post-judgment attorneys fees.
With regard to the Condominium Act, judge Millard agreed that the statute allows for an association to collect attorneys fees. However, citing the Appellate Division’s decision in Hatch v. T & L Associates, he concluded that without the condominium documents expressly providing for post-judgment collection fees, the judgment could not be amended. As Judge Millard explained:
I’m not saying that a . . . Condo Association, can’t collect post-judgment fees, attorney fees. What I am saying is you need to spell it out in your Condo Association [documents,] the notice that people get when they join the Association so that they know that they are potentially on the hook for that, if they don’t make the payment.
I’m not satisfied that you’ve done that. The generic language in the Condo Association [documents] does not include or would not put somebody on notice . . . of such post-judgment attorneys fees.
The Appellate Division’s Decision
The appeals court affirmed the trial court’s ruling in a per curium decision, which relied almost exclusively on the reasoning of the judge below. “We affirm, finding plaintiff’s arguments to be without sufficient merit to warrant further discussion in a written opinion… essentially for the reasons stated by Judge Millard in his oral decision,” the panel stated.
The Appellate Division added only the following: “It was not disputed … that the condominium documents did not mention ‘post-judgment’ collection costs, including attorneys fees.”
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
