JERRY ALLOCO VS. OCEAN BEACH AND BAY CLUB (C-000015-14, OCEAN COUNTY AND STATEWIDE) ( 2018 )


Menu:
  •                  NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-0922-16T3
    JERRY ALLOCO, EDWARD SHALVEY
    and JOHN O'GRADY,
    Plaintiffs-Appellants,
    APPROVED FOR PUBLICATION
    v.
    August 22, 2018
    OCEAN BEACH AND BAY CLUB, a New
    Jersey Corporation,                       APPELLATE DIVISION
    Defendant-Respondent,
    and
    OCEAN BEACH PEARL, LLC, a New
    Jersey Limited Liability Company,
    Defendant.
    _____________________________________
    Argued January 30, 2018 – Decided August 22, 2018
    Before Judges Yannotti, Leone, and Mawla.
    On appeal from Superior Court of New Jersey,
    Chancery Division, Ocean County, Docket No.
    C-000015-14.
    Louis M. Flora argued the cause for appellants
    (Giblin & Gannaio, attorneys; Louis M. Flora
    and Brian T. Giblin, on the briefs).
    Gregg S. Sodini argued the cause for
    respondent (Cutolo Barros, LLC, and Law Office
    of Steven J. Tegrar, attorneys; Gregg S.
    Sodini and Andrew Stein, of counsel and on the
    brief; Patricia M. Greeley, on the brief).
    The opinion of the court was delivered by
    LEONE, J.A.D.
    Plaintiffs Jerry Alloco, Edward Shalvey, and John O'Grady
    challenge the trial court's September 16, 2016 order denying their
    motion for summary judgment and granting summary judgment to
    defendant Ocean Beach and Bay Club ("Club").           We affirm.
    I.
    The following facts are undisputed.          The Club, a New Jersey
    not-for-profit corporation, was established to operate a community
    consisting    of   approximately      986   lots   individually    owned       by
    members, with common areas including a clubhouse.          The Club leases
    a bay beach and an ocean beach from the original developer,
    defendant Ocean Beach Pearl, LLC.             Plaintiffs own homes in the
    Club's community.
    The Club was established in the 1950s, with the filing of a
    map   and   deed   by   the   Ocean   Beach    Corporation.       The    Club's
    certificate of incorporation gave the Club the broad mandate "[t]o
    promote and protect the general welfare and property rights of the
    property owner members in the use and enjoyment of their property
    at" the Club.      The deed established a community scheme through
    building restrictions which, among other things, provided that
    "no[] more than one residence nor more than [a] one-story one-
    family dwelling shall be allowed on any lot," and imposed setback
    2                                A-0922-16T3
    requirements.       The deed allowed the Club to adopt rules and
    regulations concerning the construction and modification of homes
    in the community.
    The deed and bylaws require every resident to be a member of
    the Club.   The members elect the Board of Trustees (Board).             The
    Board manages the Club and is empowered to establish and change
    the rules and the regulations as needed.
    Superstorm Sandy damaged or destroyed many homes in the Club's
    community, including plaintiffs' homes.        As a result, in October
    2014, March 2015, and November 2015, the Board enacted rule changes
    and clarified and expanded building requirements connected with
    flood zone compliance.       Although these post-Sandy rule changes
    allowed   members    to   elevate   their   homes,   Alloco   was    denied
    permission to elevate his home even higher to allow the space
    beneath the elevated structure to be used for parking.
    In January 2014, plaintiffs filed a complaint in the trial
    court.    The second amended complaint contains four counts.               In
    count one, plaintiffs sought a declaratory judgment regarding the
    obligation to reconstruct damaged properties.            In count two,
    plaintiffs sought declaratory and injunctive relief regarding the
    enforcement and scope of the Club's restrictions and regulations,
    and the approvals of applications for development.
    3                              A-0922-16T3
    Count three alleged that the Board violated the business
    judgment rule by adopting and enforcing its rules and regulations.
    In particular, plaintiffs alleged the "Club acted incompetently
    in devising regulations limiting the height of structures."     They
    also claimed the Club engaged in self-dealing and breached its
    fiduciary duties to the members.      Count four alleged the Club
    failed to comply with the Club's certificate of incorporation,
    violated public policy, and violated the New Jersey Nonprofit
    Corporation Act, N.J.S.A. 15A:1-1 to 16-2.        Plaintiffs sought
    declaratory and injunctive relief, counsel fees, and costs.
    The claims in count one and most of the claims in count two
    were resolved.1   Plaintiffs filed a motion for summary judgment
    with respect to counts three and four of their complaint.        The
    Club filed a cross-motion for summary judgment.
    On September 16, 2016, the trial court, citing the business
    judgment rule, denied plaintiffs' motion for summary judgment,
    granted the Club's motion for summary judgment, and dismissed the
    complaint.   Plaintiffs appeal.
    1
    The parties agreed any unresolved claims in count two could be
    addressed in consideration of the claims asserted in counts three
    and four.
    4                         A-0922-16T3
    II.
    Summary    judgment      must   be     granted    if    "the   pleadings,
    depositions, answers to interrogatories and admissions on file,
    together with affidavits, if any, show that there is no genuine
    issue as to any material fact challenged and that the moving party
    is entitled to a judgment or order as a matter of law."                  R. 4:46-
    2(c).   The court must "consider whether the competent evidential
    materials presented, when viewed in the light most favorable to
    the   non-moving      party,    are   sufficient   to    permit      a   rational
    factfinder to resolve the alleged disputed issue in favor of the
    non-moving party."       Brill v. Guardian Life Ins. Co. of Am., 
    142 N.J. 520
    , 540 (1995).          "[T]he court must accept as true all the
    evidence which supports the position of the party defending against
    the   motion    and   must   accord   [that    party]   the   benefit     of   all
    legitimate inferences which can be deduced therefrom[.]"                  
    Id. at 535
     (citation omitted).
    Appellate courts "review the trial court's grant of summary
    judgment de novo under the same standard as the trial court."
    Templo Fuente De Vida Corp. v. Nat'l Union Fire Ins. Co. of
    Pittsburgh, 
    224 N.J. 189
    , 199 (2016). We must hew to that standard
    of review.
    5                                 A-0922-16T3
    III.
    Plaintiffs argue that the decisions of the Board should not
    be protected from judicial scrutiny by the business judgment rule.
    We disagree.
    The   business   judgment    rule   applies   to   "common   interest
    communities" such as the Club.        Comm. for a Better Twin Rivers v.
    Twin Rivers Homeowners' Ass'n, 
    192 N.J. 344
    , 369 (2007).                 Courts
    have   "uniformly   invoked   the    business   judgment    rule    in    cases
    involving     homeowners'   associations,"      because    "a   homeowners'
    association's governing body has 'a fiduciary relationship to the
    unit owners, comparable to the obligation that a board of directors
    of a corporation owes to its stockholders.'" 
    Ibid.
     (quoting Siller
    v. Hartz Mountain Assocs., 
    93 N.J. 370
    , 382 (1983)).               Similarly,
    "decisions made by a condominium association board should be
    reviewed by a court using the same business judgment rule which
    governs the decisions made by other types of corporate directors."
    Walker v. Briarwood Condo Ass'n, 
    274 N.J. Super. 422
    , 426 (App.
    Div. 1994).
    As our Supreme Court has reiterated:
    The business judgment rule has its roots in
    corporate law as a means of shielding internal
    business decisions from second-guessing by the
    courts.     Under the rule, when business
    judgments are made in good faith based on
    reasonable business knowledge, the decision
    makers are immune from liability from actions
    6                               A-0922-16T3
    brought by others who have an interest in the
    business entity. The business judgment rule
    generally asks (1) whether the actions were
    authorized by statute or by charter, and if
    so, (2) whether the action is fraudulent,
    self-dealing or unconscionable.
    [Seidman v. Clifton Sav. Bank, 
    205 N.J. 150
    ,
    175 (2011) (quoting Green Party v. Hartz
    Mountain  Indus.,   
    164 N.J. 127
    ,  147-48
    (2000)).]
    Similarly,   "[p]ursuant       to       the   business   judgment   rule,    a
    [common-interest] association's rules and regulations will [only]
    be invalidated (1) if they are not authorized by statute or by the
    bylaws or master deed, or (2) if the association's actions are
    'fraudulent, self-dealing or unconscionable.'"                  Twin Rivers, 
    192 N.J. at 369
    .
    The rules and regulations challenged here meet the first
    prong of the business judgment rule.                The Club bylaws state:      "The
    control and complete management of the Club shall be entrusted to
    the duly elected Trustees, who shall make any and all rules and
    regulations and enforce compliance therewith, as well as these By-
    Laws and the Deed Restrictions."              Thus, the Board is empowered by
    the   Club's   bylaws   to   adopt    and       amend    the   Club's   rules   and
    regulations.
    Under the second prong, to "'promote and protect the full and
    free exercise of the power of management given to the directors,'"
    the business judgment rule "'protects a board of directors from
    7                                A-0922-16T3
    being   questioned   or    second-guessed        on   conduct     of    corporate
    affairs,    except   in    instances       of    fraud,    self-dealing,         or
    unconscionable conduct.'"      In re PSE & G S'holder Litig., 
    173 N.J. 258
    , 276-77 (2002) (quoting Maul v. Kirkman, 
    270 N.J. Super. 596
    ,
    614 (App. Div. 1994)).
    The business judgment rule creates "a rebuttable presumption"
    that the actions of a Board are valid.           Id. at 277 (quoting Maul,
    
    270 N.J. Super. at 614
    ).
    It places an initial burden on the person who
    challenges a corporate decision to demonstrate
    the decision-maker's "self-dealing or other
    disabling factor." If a challenger sustains
    that initial burden, then the "presumption of
    the rule is rebutted, and the burden of proof
    shifts to the defendant or defendants to show
    that the transaction was, in fact, fair to the
    corporation."
    [Ibid. (citations omitted).]
    The evidence proffered by plaintiffs was insufficient to
    rebut the presumption of validity and carry their initial burden
    of showing the Board's actions were fraudulent, self-dealing, or
    unconscionable.           Plaintiffs       did    not     claim        fraud     or
    unconscionability.    Rather, they argued the Board engaged in self-
    dealing    because   it    failed   to     uniformly      enforce      rules   and
    restrictions. However, plaintiffs' claims are unsubstantiated and
    unrelated to the Board's actions, such as the height limitations
    that plaintiffs challenge in this litigation.
    8                                  A-0922-16T3
    First, plaintiffs asserted Board President John Houseworth
    and the Board were aware that fellow Board member Joseph Bruno
    violated the Club's rule that "construction in progress must cease
    on June 15th" "until after Labor Day," but did nothing about it,
    and did not include Bruno as a defendant in the Club's lawsuit to
    stop   violations    of   the   summer   construction   ban.        However,
    Houseworth testified at his deposition he was only aware that
    Bruno was "fixing windows."          Plaintiffs cited the deposition
    testimony of a former Club security guard that while on patrol he
    observed    and   reported   the   construction   activity     at    Bruno's
    property.    However, the security guard was not aware whether or
    not Bruno had obtained a hardship waiver from the Club that would
    have made the reported construction permissible.
    Second, plaintiffs alleged that the house of a former Board
    member, James Freehan, violated the setback requirement.            However,
    Houseworth testified only that he had "no recollection as to
    whether or not this has ever been investigated."               Plaintiffs
    proffered no evidence that such a violation had occurred, had been
    brought to the Board's attention, or that non-Board members were
    investigated for similar building violations.
    Third, plaintiffs alleged that Houseworth engaged in self-
    dealing because he paid $2200 for the demolition of his house that
    was damaged in Superstorm Sandy.         Plaintiffs noted the Board had
    9                               A-0922-16T3
    awarded a demolition company a contract to perform the demolitions
    at the Club for $4000 per home.             However, Houseworth certified
    that the reduced rate was the result of bargain struck between
    Houseworth and the demolition company that allowed the company to
    keep all the possessions and fixtures within the home.           Plaintiffs
    presented no contrary evidence.
    Fourth, plaintiffs claimed self-dealing because Houseworth's
    outdoor deck was approved even though the Club's deed restriction
    provides that no "structure of any kind shall be erected closer
    than   35   feet    to   the   Oceanfront   side."    However,   Houseworth
    testified that the building approval process was handled in a
    separate committee, not by the Board, and that he was unaware how
    the committee defined "structure."          Plaintiffs failed to show that
    the "structure" rule is being applied differently to members who
    are not on the Board.          Moreover, a suit challenging Houseworth's
    deck was dismissed with prejudice.
    Fifth, plaintiffs argued Board members did not pay Club dues.
    However, Houseworth testified that he was aware of Board members
    not paying dues prior to his becoming Board president in January
    2013, but he immediately put a stop to that practice.
    As the trial court noted, none of these alleged acts of self-
    dealing     have   any   nexus   to   the   rule   changes   plaintiffs   are
    challenging.       To overcome the business judgment rule, a plaintiff
    10                             A-0922-16T3
    must    show    that    "the    challenged         []   actions"   constitute
    "impermissible self-dealing."         Seidman, 
    205 N.J. at 177
    .            Here,
    there was "no indication that the . . . Board has benefited by
    the" challenged rule changes.               Owners of the Manor Homes of
    Whittingham v. Whittingham Homeowners Ass'n, 
    367 N.J. Super. 314
    ,
    323 (App. Div. 2004) (finding no "self-dealing in the Board's
    action").      Allegations of self-dealing in unrelated matters are
    insufficient.     In re Prudential Ins. Co. Derivative Litig., 
    282 N.J. Super. 256
    , 281 (Ch. Div. 1995); see also PSE & G, 
    173 N.J. at
    278-82 (citing Prudential with approval).                  In any event,
    plaintiffs failed to proffer evidence showing self-dealing even
    in those other matters.
    IV.
    Plaintiffs also argue that the Board and its rules are
    incompetent.     However, showing Board members or their rules were
    incompetent     does   not   show   that    they   were   "fraudulent,     self-
    dealing, or unconscionable," as required by our Supreme Court.
    Seidman, 
    205 N.J. at 175
     (quoting Green Party, 
    164 N.J. at 147
    );
    accord Twin Rivers, 
    192 N.J. at 369
    ; see PSE & G, 
    173 N.J. at
    276-
    77 (requiring "[f]raud, self-dealing or unconscionable conduct");
    accord Thanasoulis v. Winston Towers 200 Assoc., 
    110 N.J. 650
    , 657
    (1988); Siller, 
    93 N.J. at 382
    .
    11                                 A-0922-16T3
    Plaintiffs cite a Chancery Division decision, Papalexiou v.
    Tower W. Condo., 
    167 N.J. Super. 516
     (Ch. Div. 1979), which stated
    that "[c]ourts will not second-guess the actions of directors
    unless it appears that they are the result of fraud, dishonesty
    or incompetence."      
    Id.
     at 527 (citing Sarner v. Sarner, 
    62 N.J. Super. 41
    , 60 (App. Div. 1960)).           However, the chancery court
    preceded this statement by properly stating that the business
    judgment rule
    requires the presence of fraud or lack of good
    faith in the conduct of a corporation's
    internal affairs before the decisions of a
    board of directors can be questioned. If the
    corporate directors' conduct is authorized, a
    showing must be made of fraud, self-dealing
    or unconscionable conduct to justify judicial
    review. . . . All that is required is that
    persons in such positions act reasonably and
    in good faith in carrying out their duties.
    [Ibid.]
    Thus, it appears the chancery court was attempting to state the
    business judgment rule, not change it to an incompetence standard.
    Moreover,   the    chancery   court    mistakenly   cited   Sarner's
    language addressing, not the business judgment rule, but the
    requirements for imposition of a receiver: "Short of a showing of
    such fraud, dishonesty or incompetency as would disqualify an
    officer or director from serving a corporation, the court will not
    interpose a receiver between the stockholders and the directorate
    12                             A-0922-16T3
    to conduct the ordinary business affairs of the corporation."               
    Id. at 60
     (citation omitted).          Even if incompetence is relevant to
    appointing a receiver, it does not constitute fraud, self-dealing,
    or unconscionability.2
    We have cited that language from Papalexiou and Sarner only
    in cases where we did not apply the business judgment rule, and
    thus those citations were dicta.          Mulligan v. Panther Valley Prop.
    Owners Ass'n, 
    337 N.J. Super. 293
    , 300, 303 (App. Div. 2001)
    (holding   that   the   business    judgment    rule   does   not   apply    to
    amendments passed by the membership as a whole); Grato v. Grato,
    
    272 N.J. Super. 140
    , 150-51 (App. Div. 1994) (not reaching whether
    the business judgment rule applies to closely-held corporations).
    Our Supreme Court has cited Papalexiou only as stating that
    "[f]raud, self-dealing or unconscionable conduct at the very least
    should be subject to exposure and relief."          Siller, 
    93 N.J. at
    382
    (citing Papalexiou, 
    167 N.J. Super. at 527
    ).           We must continue to
    follow the Supreme Court's lead and require a showing of fraud,
    self-dealing or unconscionable conduct.             Ibid.; accord, e.g.,
    2
    Sarner did not mention the business judgment rule, save to state
    that "[c]ourts will not interfere with the internal government of
    business corporations where there are honest differences of
    opinion concerning management between different factions in
    interest." 
    62 N.J. Super. at 60
    . See Green Party, 
    164 N.J. at
    147 (citing Sarner, 
    62 N.J. Super. at 60
    ).
    13                               A-0922-16T3
    Whittingham, 
    367 N.J. Super. at 322
    ; Walker, 
    274 N.J. Super. at 426
    .
    Plaintiffs also argue the Board's decisions are arbitrary.
    The Court has remarked that "the business judgment rule protects
    common    interest     community     residents   from     arbitrary   decision-
    making."    Twin Rivers, 
    192 N.J. at 369
    .              However, the rule does
    so by invalidating regulations "(1) if they are not authorized by
    statute    or    by   the   bylaws    or    master    deed,    or   (2)   if   the
    association's         actions   are        'fraudulent,       self-dealing       or
    unconscionable.'"        
    Ibid.
     (citation omitted).            "If a challenger
    sustains that initial burden," then courts can consider whether
    the regulation was "'fair to the corporation.'"               PSE & G, 
    173 N.J. at 277
     (citation omitted).
    Our Supreme Court has "reject[ed] plaintiffs' invitation to
    limit the scope of the business judgment rule."               Seidman, 
    205 N.J. at 155
    .     We similarly reject plaintiffs' efforts to evade the
    requirement that they show fraud, self-dealing, or unconscionable
    conduct.    "'The business judgment rule bars judicial inquiry into
    the decisions of the board of directors made in good faith'" and
    within "'the limits of the by-laws.'"                Reilly v. Riviera Towers
    Corp., 
    310 N.J. Super. 265
    , 270 n.4 (App. Div. 1998) (citation
    omitted).       The Board's decision "'should not be tampered with by
    the judiciary so long as the decision is one within the power
    14                                 A-0922-16T3
    delegated to the directors and there is no showing of bad faith.'"
    PSE & G, 
    173 N.J. at 277
     (citation omitted).                     "[B]ad judgment,
    without bad faith, does not ordinarily make officers individually
    liable."    Maul, 
    270 N.J. Super. at 614
    .
    In any event, plaintiffs failed to show that the Board's
    regulations were arbitrary or incompetent.                   As the trial court
    noted, the challenged rule changes do not appear arbitrary, but
    rather appear to be "a proper exercise of authority designed to
    maintain the property rights of members."
    Plaintiffs       claim   the    Board       was   incompetent      because      it
    promulgated    rules    and    regulations        without    "expert     guidance."
    Plaintiff     cites    Houseworth's         statements      that       "I'm   not     a
    construction expert," and "I'm not well versed as a construction
    consultant or surveyor," and that he did not "know anything about
    construction" and was "not familiar with" the Toms River building
    code."   Plaintiffs also cite deposition testimony from Board vice-
    president   Ken   Levine      in   which    he    agreed    he   had    not   studied
    engineering or construction, had no "experience in construction,"
    and had not studied "FEMA or flood regulations."
    However, the business judgment rule does not require Board
    members to be construction experts.               The members of the Board are
    an elected group of residents tasked with maintaining, through
    enforcement and adaptation, a community scheme established by the
    15                                     A-0922-16T3
    founders.    They are protected if they make their decision "in good
    faith based on reasonable business knowledge."              Seidman, 
    205 N.J. at 175
     (quoting Green Party, 
    164 N.J. at 147
    ).
    Moreover, the Club offered a report written by their expert
    Gordon Gemma, a licensed professional planner, in support of their
    cross-motion    for    summary    judgment.       Gemma    reviewed      the   deed
    restrictions, bylaws, the certificate of incorporation, and the
    Club rules adopted by the Board since Superstorm Sandy.                          He
    concluded that the Club's rules were "justified as promoting and
    protecting the health, safety, general welfare and property rights
    of the property owners" and "a valid exercise of the purposes of
    the" Club.
    Houseworth       certified   that     the   Board    implemented     all    of
    Gemma's     recommendations,      which     included     allowing     additional
    storage   space   under     houses,      allowing   additional      height      for
    construction in flood zones, and relaxing restrictions on stairs,
    stair platforms, and decks.           Following Gemma's recommendations,
    the Club also retained a professional planner to review all
    construction    applications.         Plaintiffs    submitted       no   contrary
    evidence or expert report.
    The Board adopted the post-Sandy rules before Gemma was
    retained. Nonetheless, his finding that the rules were "justified"
    and "valid" rebutted the claim that the rules were incompetent or
    16                                  A-0922-16T3
    arbitrary.        Moreover,    the   Board's    implementation        of    Gemma's
    recommendations demonstrated good faith.
    Plaintiffs      argue    that   Gemma's    report       should   have      been
    rejected as a net opinion.               Courts review "'a trial court's
    decision to admit expert testimony'" on summary judgment under
    "'an abuse of discretion standard.'"           Townsend v. Pierre, 
    221 N.J. 36
    , 53 (2015) (citation omitted).
    The net opinion rule dictates "an expert's bare opinion that
    has no support in factual evidence or similar data is a mere net
    opinion which is not admissible and may not be considered."
    Pomerantz Paper Corp. v. New Cmty. Corp., 
    207 N.J. 344
    , 372 (2011).
    Accordingly, "the net opinion rule 'requires an expert to give the
    why and wherefore of his or her opinion, rather than a mere
    conclusion.'"       State     v.   Townsend,   
    186 N.J. 473
    ,    494    (2006)
    (citation omitted).
    Our Supreme Court recently stated "[t]he net opinion rule is
    not a standard of perfection.            The rule does not mandate that an
    expert organize or support an opinion in a particular manner that
    opposing counsel deems preferable."            Townsend v. Pierre, 221 N.J.
    at 54 (citation omitted).          "An expert's conclusions should not be
    excluded merely '"because it fails to account for some particular
    condition    or   fact   which     the    adversary   considers relevant."'"
    Ibid. (citation omitted).          "The expert's failure 'to give weight
    17                                 A-0922-16T3
    to a factor thought important by an adverse party does not reduce
    his testimony to an inadmissible net opinion if he otherwise offers
    sufficient reasons which logically support his opinion.'"                 Ibid.
    (citation omitted).
    Plaintiffs assert Gemma's report was a net opinion because
    he failed to examine minutes of Board meetings, interview Board
    members,   visit   the   site,    or   review    the   discovery    in      this
    litigation.    However, such inquiries were not needed.              Gemma's
    April 14, 2016 report states that he examined: (a) the restrictions
    set forth in the 1954 Deed; (b) the certificate of incorporation,
    bylaws, and rules reprinted June 2005; (c) rule changes dated
    October 2013; (d) rule changes dated October 2014; (e) rule changes
    dated March 2015; and (f) rule changes dated November 2015.
    Gemma    concluded,    "in   [his]      opinion   as   a   professional
    planner," based on "the Club's history of regulations as well as
    the process to implement" them, "that the Rules as originally
    adopted and which have been imposed since creation of the Club
    remain a valid exercise of the purposes of the Association," that
    "the Club may continue to adopt and enforce land use and other
    restrictions that promote and protect the general welfare and
    property rights of the property owners," and that certain rule
    amendments should be adopted.      To reach those conclusions, it was
    unnecessary   to   review   minutes     or   discovery,     interview     Board
    18                                   A-0922-16T3
    members, or visit the site; review of the governing documents and
    the rules and rule changes was sufficient.                 Thus, Gemma's report
    contains      the     factual     basis      for     his        conclusions     and
    recommendations.
    Plaintiffs argue Gemma applied a personal standard.                      "'A
    standard which is personal to the expert is equivalent to a net
    opinion.'"     Pomerantz Paper, 
    207 N.J. at 373
     (citation omitted).
    However, Gemma not only referred to the documents governing the
    Club   but   also   reviewed     New   Jersey     case    law   relevant   to   the
    enforceability of private restrictive covenants in the context of
    a community scheme.        Gemma also referenced FEMA requirements.
    Experts can rely on legal standards pertinent to their profession.
    Costantino v. Ventriglia, 
    324 N.J. Super. 437
    , 448 (App. Div.
    1999); see Davis v. Brickman Landscaping, 
    219 N.J. 395
    , 412 (2014)
    We cannot say the trial court abused its discretion in
    considering     the    report.         Considering       the    Club's   governing
    documents and its regulations in light of those standards was an
    appropriate topic for a professional planner, and not a "common
    knowledge" topic a lay person could address.
    V.
    Plaintiff also argues that the Board made procedural errors.
    However, showing an error, particularly unrelated errors, does not
    show   the   Board's   challenged       actions    were    "'fraudulent,      self-
    19                                 A-0922-16T3
    dealing or unconscionable.'"           Seidman, 
    205 N.J. at 175
     (citation
    omitted).
    First, plaintiffs argue that the Board secretary failed to
    print    and   send   the   members      notice      of    changes    in    rules    and
    regulations     "no   later   than    30      days   after    the    same    has    been
    enacted," as mandated by the Club's bylaws.                         Plaintiffs cite
    Houseworth's     deposition    where       he   stated     that     circulation      was
    delayed "[b]ecause it's a volunteer job, and some people lack
    urgency."      However, Houseworth's candid response did not show bad
    faith on the part of the Board, especially in light of his
    testimony that he was presently addressing the issue.                       Moreover,
    Levine testified that although the rule changes were not initially
    mailed, they were "communicated via email blasts and posting on
    the website."     Plaintiffs did not challenge that the rule changes
    were published electronically in a timely fashion.
    Second, plaintiffs claimed the Board tried to stifle dissent
    through an amendment to the Club's bylaws provided that a Board
    member who institutes litigation against the Club is suspended
    from the Board during the litigation.                However, the amendment to
    the bylaws was adopted by the membership of the Club, not the
    Board.      Plaintiffs      have   not     shown     the    members'       action   was
    impermissible, let alone that it showed bad faith by the Board.
    20                                    A-0922-16T3
    Third, plaintiffs argue that the Board violated the New Jersey
    Planned Real Estate Development Full Disclosure Act (PREDFDA),
    N.J.S.A. 45:22A-21 to -56, by failing to offer alternative dispute
    resolution (ADR). However, the Board adopted a resolution offering
    ADR on June 4, 2016.
    Finally, plaintiffs note "[t]he PREDFDA statute provides
    additional protections."     A 1993 amendment to PREDFDA added that:
    "The bylaws of the association, which shall initially be recorded
    with the master deed shall include . . . [a] requirement that all
    meetings of the executive board, except conference or working
    sessions at which no binding votes are to be taken, shall be open
    to attendance by all association members[.]"         N.J.S.A. 45:22A-46,
    -46(a).   Plaintiffs argue they were not "permitted to attend board
    meetings, where the rules were adopted."
    However, plaintiffs raised no such claim in their complaint.
    Their   statement   of   material   facts   and   Alloco's   certification
    alleged the Board never permitted members to be present when it
    voted on rules concerning construction until the June 4, 2016
    meeting, but there is no mention of that claim or PREDFDA in their
    oral argument to the trial court on summary judgment.          The court's
    opinion does not mention that claim.
    It is well-settled that New Jersey "appellate courts will
    decline to consider questions or issues not properly presented to
    21                             A-0922-16T3
    the trial court when an opportunity for such a presentation is
    available unless the questions so raised on appeal go to the
    jurisdiction of the trial court or concern matters of great public
    interest."      Selective Ins. Co. of Am. v. Rothman, 
    208 N.J. 580
    ,
    586 (2012) (quoting Nieder v. Royal Indem. Ins. Co., 
    62 N.J. 229
    ,
    234 (1973)).      That is not the case here.
    We recognize that we do not have plaintiffs' summary judgment
    brief in the trial court.         See R. 2:6-1(a)(2).       If in that brief,
    plaintiffs raised a claim that the Club violated PREDFDA by not
    allowing members to attend Board meetings where the challenged
    rules    were   adopted,    our   affirmance      is    without    prejudice         to
    plaintiffs seeking an adjudication of that claim in the trial
    court.
    Plaintiffs' remaining arguments lack sufficient merit to
    warrant discussion.        R. 2:11-3(e)(1)(E).         We need not address the
    Club's arguments that plaintiffs are barred from raising several
    of   their   claims   because     courts   have    rejected       them   in     other
    proceedings.
    Affirmed.
    22                                      A-0922-16T3