CAI-NJ Jan.2018 (w)

28 / 56

28 J A N U A R Y , 2 0 1 8
Service is our
specialty;
protecting you
is our mission®
With JGS, you get the benefit of our extensive
experience in community association insurance.
We work with the nation’s top insurers to design
competitive programs that address your needs.
Let us show you your options.
Leadership and innovation
in community association insurance
Property | General Liability | Umbrella | Workers Comp
Directors and O cers | Environmental Liability | Flood
Equipment Breakdown | Automobile | Professional Insurance
To learn more call 877.547.4671 or visit
Proud members of
nize that unit owners are powerless
to protect themselves from the harsh
effect of SOL’s prior to transition, the
“discovery rule” law that the Court
did apply is well settled and known to
construction defect practitioners. That
part of the Court’s decision is not the
concern. What came next is what is
alarming. In applying the discovery
rule to determine when the clock
starting running on the Palisades at
Fort Lee Condominium Association’s
claims, the Supreme Court held that
the knowledge of the association’s
predecessor in title, i.e. the Sponsor,
was relevant to the inquiry. The Court
held that “[a]n owner of a building
cannot convey greater property rights
to a purchaser than the owner pos-
sessed. If the building’s owner knew
or reasonably should have known
of construction defects at the time of
the sale of the property, the purchas-
er takes title subject to the original
owner’s right—and any limitation on
that right—to file a claim against
the architect and contractors....if the
building’s original owner does not file
a construction-defect lawsuit within
the six-year limitations period from
accrual of an actionable claim, the
purchaser taking title has no right to
revive a lapsed claim.” The Court then
remanded the matter back to the trial
court to hold an evidentiary hearing
to determine what the Sponsor knew
and when the Sponsor knew it.
So what does this mean for condo-
minium associations? Simply put, if,
prior to transition, the Sponsor of your
condominium knew or should have
PALISADES...
from page 27.
CONT I NU E S ON PAGE 44