New Jersey extends the statute of limitations in construction cases involving planned real estate development associations.

N.J.S.A. 2A:14-1 has been amended to add a new subsection. The addition provides that the timing of a claim filed by a planned real estate development association is tolled “until an election is held and the owners comprise a majority of the board.” This extends the prior statute of limitations for a construction defect claim (not arising from an unsafe condition) which was calculated at six years from the date of substantial completion of the planned real estate development project. The new law tolls the time for an association “acting through, on behalf of, or at the behest of the developer,” but it does not expressly toll it for claims against subcontractors. 

In a practical sense, the expiration of the statute of limitations for claims against a general contractor and/or its subcontractors can thereby occur before accrual of an association’s claims. Regardless, a developer would not be able to take advantage of the tolling of time to bring related claims (contractual and/or tort) against its own contractors if the association does not sue the contractor/subs directly.
 

^{Case Law Alerts, 3rd Quarter, July 2022 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2022 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.}