The New Jersey Supreme Court ruled Thursday that a condominium association can't restart the clock on the six-year statute of limitations for construction defects after acquiring a former rental property.

The justices reversed an Appellate Division ruling that found three suits filed against contractors by the Palisades at Fort Lee Condominium Association on various dates in March and April 2009 and September 2010 were within the six-year limit because the association received notice of construction defects in the building in an engineer's report issued in June 2007.

The construction defect action accrued when the building's original or subsequent owner first knew, or should have known through reasonable diligence, about the basis for a claim, the court said. The statute of limitations clock is not reset whenever a property changes hands, the court said, rejecting the Appellate Division's view that the statute of limitations could not accrue before the plaintiff gained full control of the condominium association.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Go To Lexis →

Not a Lexis Subscriber?
Subscribe Now

Go To Bloomberg Law →

Not a Bloomberg Law Subscriber?
Subscribe Now

NOT FOR REPRINT