A4903 —

A4903 AJU1R Statement[First 5/12/21Reprint] ASSEMBLY JUDICIARY COMMITTEE   STATEMENT TO   ASSEMBLY, No.

4903  STATE withOF committeeNEW amendmentsJERSEY 219th LEGISLATURE   STATEINTRODUCED OFOCTOBER NEW29, JERSEY2020   DATED:  Sponsored by:

 MAYAssemblyman  12,GORDON 2021M.         The Assembly Judiciary Committee reports favorably and with committee amendments Assembly Bill No.

4903.JOHNSON District 37 (Bergen) Assemblyman  RAJ MUKHERJI District 33 (Hudson)   Co-Sponsored by:

    Assemblywoman ThisMurphy bill  would  adjust  the  SYNOPSIS      Adjusts statute of limitations on damage claimsclaim for construction defectsdefect in common interest communities. community. Specifically, in a claim for damages resulting from a construction defect in a condominium, cooperative, or other planned real estate development, the bill as amended would require the statute of limitations to begin running at the time an election is held and the owners comprise a majority of the board.

As  introduced,CURRENT theVERSION billOF hadTEXT provided     thatAs thereported statuteby ofthe limitationsAssembly wouldJudiciary beginCommittee running on theMay date12, of2021, thewith transitionamendments. of the board from developer control.

       TheAn statuteAct ofconcerning limitations for filing a claim for damages resulting from a construction defectdefects currently runs for six years from the date of a project’s substantial completion, so long as the defect does not result in an unsafe condition.  A developer retains the ability to control the majority of a common interest community’scommunities executive board until the transition from developer control, which occurs 60 days after the conveyance of 75 percent of the units in the community.  The transition from developer control and theamending assumptionN.J.S.2A:14-1. of control by the unit owners pursuant to an election can occur years after the project’s substantial completion, leaving little or no time within the six-year window for the owner-controlled board to decide to file a claim against a developer, even when legitimate defects exist.  This bill as amended would provide the owner-controlled board more time to file a construction defect claim by requiring the statute of limitations to begin running when an election is held pursuant to law and the owners comprise a majority of the board.

       TheseBe amendmentsIt makeEnacted thisby billthe identicalSenate toand Senate,General No.Assembly of the State of New Jersey:

396  (1R),     which1.    wasN.J.S.2A:14-1 alsois consideredamended andto releasedread byas thefollows: committee on this date.

      COMMITTEE2A:14-1.  AMENDMENTS:a.  Every action at law for trespass to real property, for any tortious injury to real or personal property, for taking, detaining, or converting personal property, for replevin of goods or chattels, for any tortious injury to the rights of another not stated in [sections 2A:14-2 and 2A:14-3 of this Title] N.J.S.2A:14-2 and N.J.S.2A:14-3, or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within six years next after the cause of any such action shall have accrued.

     Amendb.    subsectionThis c.section shall not apply to any action for breach of any contract for sale governed by [section 12A:2-725 of the New Jersey Statutes] N.J.S.12A:2-725.

of     sectionc.     1The period of time for the billfiling (N.J.S.2A:14-1)of toa provideclaim thatby thea periodcondominium ofassociation, timecooperative forcorporation, filingor ofother aplanned claimreal shallestate bedevelopment tolledassociation untilagainst ana electiondeveloper isor heldany andperson theacting ownersthrough, compriseon abehalf majorityof or at the behest of the board.developer under subsection a.

of this section, shall be tolled until 1[the date of the transition from developer control, as established]  an election is held and the owners comprise a majority of the board1 pursuant to paragraph (3) of subsection a.

of section 5 of P.L.1993, c.30 (C.45:22A-47), or subsection d.

of section 2 of P.L.1979, c.157 (C.46:8B-12.1).  Any cause of action involving a condominium, cooperative,  or other planned real estate development under the provisions of subsection a.

of this section that has not been subject to a final judgment dismissing the claim as of the effective date of P.L.    , c.    (pending before the Legislature as this bill) shall be subject to the terms of this subsection.   (cf:

P.L.1961, c.121, s.1)        2.    This act shall take effect immediately.