Aug 13, 2013

No Direct Right of Action for Condominium Association

Falcon Ridge Condominium Ass’n, Inc. v. Silver Fox, LLC, (Super. Ct. of New Jersey, Sussex County, Docket No. L-860-11).

The firm recently obtained a ruling, dismissing an action that had been brought by a condominium association, against Mt. Hawley Insurance Company under a policy issued to the Project Developer.

The suit raised allegations that multiple construction defects had led to extensive property damage to a 150+ unit condominium complex in Hamburg, N.J., and to personal property within the units. Mt. Hawley argued for dismissal on the basis that the Association did not have a direct right of action against the Developer’s insurer. The Association attempted to argue in response that its claim came within various alleged exceptions to the common law rule barring such direct actions. The Association also argued for an exception for actions seeking only declaratory relief rather than seeking an immediate award of damages against the insurers.

The Court, Hon. Edward V. Gannon, presiding, agreed with Mt. Hawley and dismissed the suit against it for failure to state a cognizable claim.

Partner Joseph D’Ambrosio and Associate Catherine Altier represented Mt. Hawley in this action.

By, Joseph D’Ambrosio