Hudson Tea Building Condominium Association v. Block 268 (New Jersey)
Hudson Tea Building Condominium Association v. Block 268 involves two high rise residential structures known as 1500 Hudson Street and 1500 Washington Street, Hoboken, New Jersey within the Hudson Tea Buildings, which were converted from rental units to a not for profit condominium pursuant to the New Jersey Condominium Act in 2005. In this regard, a Public Offering Statement ("POS"), was issued for Hudson Tea and was filed by the Sponsor, Block 268, LLC with the State of New Jersey, Department of Community Affairs on June 30, 2005. The Association was dominated and controlled by the Sponsor until about July 2008, when the Sponsor turned over control of the Board to the Association pursuant to the New Jersey Condominium Act (N..J.S.A. -!6:813-12.1 et. seq.).
Thereafter, the Association retained The Falcon Group, ("Falcon") an engineering firm, to investigate various problems, defects and deficiencies with the buildings and common areas. Falcon has rendered several reports which show that there are substantial systemic defects and deficiencies that exist throughout the buildings, including but not limited to the fire resistance and protection walls, exterior facades, roof assemblies, window wall assemblies and perimeter terminal air-conditioning ("PTAC") unit sleeves, insulation, concrete walkways and landscaping ("Construction Deficiencies").
The case seeks to answer whether the Appellate Court erroneously upheld the policy favoring arbitration rather than yielding to the practicality of the circumstances presented by a Condominium Association tasked with remedying the defect at issue; whether a portion Plaintiff's construction defect, tort and fraud claims against the Defendants are subject to arbitration under the terms of certain Purchase Agreements entered into by a minority of the individual unit owners (not the Association), with the Sponsor; and whether the Appellate Court erred in determining that the arbitration clauses were so broad as to extend beyond the closing of the purchase. There is no indication here that the Individual Plaintiffs contemplated that they were waiving their rights to statutory or contractual claims arising from systemic latent defects in construction.
Brief: CAI's Request to File Amicus Brief
Prior Ruling: Appellate Court Decision
Status: Pending
CAI Amicus Brief Author: Hueston McNulty and Kennedy, Wronko, Kennedy
CAI Amicus Brief Review Committee: Richard Ekimoto, Esq; Mary Howell, Esq; Marc Markel, Esq; Stephen Marcus, Esq; Steven Sugarman, Esq; Steve Weil, Esq.