Gordon Rees Scully Mansukhani South Jersey Partner Melissa Brown and Associate Lilli Friedman secured a significant win for the firm’s client, a condominium association, obtaining trial court affirmation that rental fees are permissible under the New Jersey Condominium Act.
In cross-motions for summary judgment, the plaintiff alleged that the association violated the law by implementing rental fees for unit owners who lease their properties, arguing that expenses related to security, maintenance, and property management constituted common expenses that could not be offset through such fees. The GRSM team successfully demonstrated that the challenged fees fall squarely within those deemed lawful by the Appellate Division in Chin v. Coventry Square Condo, 270 N.J. Super. 323 (App. Div. 1994), and that the association’s rental fees were directly tied to costs incurred as a result of rental activity.
The trial court agreed, affirming the decision in Chin v. Coventry Square Condo and holding that rental fees of this nature are lawful under the New Jersey Condominium Act, which reinforces an association’s authority to address the real costs associated with rental units.
This outcome reflects GRSM’s depth of experience in handling director and officer claims, particularly those involving condominium governance.