A COUNTRY PLACE CONDOMINIUM ASSOCIATION VS. MAROECHEABDELHAK(DC-12065-14, OCEAN COUNTY AND STATEWIDE) ( 2017 )


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  •                         NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    This opinion shall not "constitute precedent or be binding upon any court."
    Although it is posted on the internet, this opinion is binding only on the
    parties in the case and its use in other cases is limited. R.1:36-3.
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-0145-15T4
    A COUNTRY PLACE CONDOMINIUM
    ASSOCIATION,
    Plaintiff-Respondent,
    v.
    MAROECHE ABDELHAK,
    Defendant-Appellant.
    _____________________________________
    Argued October 6, 2016 – Decided June 6, 2017
    Before Judges Leone and Vernoia.
    On appeal from Superior Court of New Jersey,
    Law Division, Special Civil Part, Ocean
    County, Docket No. DC-12065-14.
    Daniel Louis Grossman argued the cause for
    appellant.
    Philip D. Tobolsky          argued    the   cause    for
    respondent.
    PER CURIAM
    Defendant Maroeche Abdelhak appeals a July 16, 2015 order
    awarding maintenance fees, counsel fees, and costs to plaintiff,
    A Country Place Condominium Association. We affirm in part, vacate
    in part, and remand.
    I.
    Unless otherwise indicated, the following facts were found
    by the trial court.     Defendant owned a unit in plaintiff's 376-
    unit condominium complex in Lakewood.        He was pleased with the
    services until management of the property was taken over by Ocean
    Management Group.
    Defendant took issue with the growth of roots in the yards
    in front and in back of his unit.       During the dispute, defendant
    stopped paying his monthly maintenance fees to plaintiff.       He also
    accrued late fees, counsel fees, and other fees.
    Defendant   and   plaintiff   entered   into   an   agreement   that
    plaintiff would perform work on the front and back yards, and
    defendant would pay around $3000.       Under the agreement, defendant
    would pay half in advance and half when the work was finished.
    Defendant paid $1505 in advance.        The work on the back yard was
    done to defendant's satisfaction.       However, the work on the front
    yard was never done.
    Defendant testified that, as a result, he never paid the
    other half of the $3000.    Plaintiff's property manager testified
    that, after being credited for paying the $1505 in June 2013,
    2                             A-0145-15T4
    defendant never paid his monthly maintenance fee, resulting in a
    balance of $6615 by the June 2015 trial.
    Defendant's complaint about the roots in the yards was only
    one of his complaints about plaintiff's care of the common areas.
    He testified plaintiff failed to properly cut the grass or power
    wash mildew from the exterior of the roof.             He also testified
    that, as a result of the dispute, plaintiff did not plow, shovel,
    salt, or sand snow and ice on his driveway and walkway as promptly
    as it did for his neighbors, leaving him "trapped" in his house
    for days.     Plaintiff's former officer manager testified that "it
    was my experience that there were a few homeowners that were due
    services and being they were behind on their maintenance payments,
    the services were not provided," and that it was "a possibility"
    that was why defendant's unit was not fully serviced.
    Plaintiff filed a complaint in the Special Civil Part seeking
    maintenance    fees,   late   fees,   and   counsel   fees    defendant   was
    required to pay under the master deed and bylaws.            Defendant filed
    a counterclaim alleging plaintiff failed to provide the services
    and unit maintenance required by the master deed and bylaws.1
    1
    Nonetheless, the parties have failed to provide the master deed,
    or any portion of the bylaws other than the counsel fee provision.
    3                              A-0145-15T4
    The    trial    court    found       defendant      should    have      paid   the
    management fees in full.         The court awarded plaintiff $6615.2                The
    court   declined    to   award      the    $950    in   late    fees   requested      by
    plaintiff but ultimately granted plaintiff $2435.12 in counsel
    fees.   The court dismissed defendant's counterclaim.                     He appeals.
    II.
    We    must    hew   to   our     "deferential        standard"     of    review.
    D'Agostino v. Maldonado, 
    216 N.J. 168
    , 182 (2013).                            "'Final
    determinations made by the trial court sitting in a non-jury case
    are subject to a limited and well-established scope of review[.]'"
    
    Ibid. (citation omitted). "'[W]e
    do not disturb the factual
    findings and legal conclusions of the trial judge unless we are
    convinced    that    they     are     so        manifestly     unsupported     by     or
    inconsistent with the competent, relevant and reasonably credible
    evidence as to offend the interests of justice . . . .'"                         
    Ibid. (citation omitted). "To
    the extent that the trial court's decision
    constitutes a legal determination, we review it de novo."                       
    Ibid. III. The trial
    court could properly find defendant owed $6615 in
    unpaid maintenance fees he withheld during the dispute.                         During
    his testimony, defendant admitted he was unaware of anything in
    2
    The transcript shows the trial court initially ordered defendant
    to pay $6650, but that appears to be a transcription error.
    4                                  A-0145-15T4
    the master deed or bylaws which allowed him to withhold his monthly
    payments if he was unhappy with the services he received.                    Absent
    such   a   provision,    we    are    unaware   of     any   authority     allowing
    defendant    to     withhold    his     maintenance     fees    because     he   was
    dissatisfied with the services.
    No such authority is provided in the Condominium Act, N.J.S.A.
    46:8B-1 to -38.       A condominium association "shall be responsible
    for    the   performance        of     [its]    duties,"       including     "[t]he
    maintenance, repair, replacement, cleaning and sanitation of the
    common elements."       N.J.S.A. 46:8B-14(a).           "[T]he costs of [doing
    those duties] shall be common expenses[.]"                   N.J.S.A. 46:8B-14.
    "The association may levy and collect assessments duly made by the
    association for a share of common expenses or otherwise, . . .
    together     with    interest        thereon,   late     fees    and   reasonable
    attorneys' fees, if authorized by the master deed or bylaws."
    N.J.S.A. 46:8B-15(e).
    "A unit owner shall, by acceptance of title, be conclusively
    presumed to have agreed to pay his proportionate share of common
    expenses accruing while he is the owner of a unit."                        N.J.S.A.
    46:8B-17.     "No unit owner may exempt himself from liability for
    his share of common expenses by waiver of the enjoyment of the
    right to use any of the common elements or by abandonment of his
    unit or otherwise."           Ibid.; accord Brandon Farms Prop. Owners
    5                                 A-0145-15T4
    Ass'n v. Brandon Farms Condo. Ass'n, 
    180 N.J. 361
    , 368 (2004);
    Ocean Club Condo. Ass'n v. Gardner, 
    318 N.J. Super. 237
    , 240 (App.
    Div. 1998).
    "The obligation to pay condominium fees has been described
    as 'unconditional.'"       The Glen, Section I Condo. Ass'n v. June,
    
    344 N.J. Super. 371
    , 376 (App. Div. 2001).                 In The Glen, unit
    owner June was delinquent in paying maintenance assessments, and
    the   association    suspended    his       privileges   to   use    all    common
    elements, deliberately piled snow in his driveway in violation of
    its duty of good faith and fair dealing, and exceeded its powers
    by installing a "lolly" column to prevent use of his own garage.
    
    Id. at 374,
    378-80.        Nonetheless, we rejected the trial court's
    ruling that the association's acts "absolved June of his obligation
    to pay the monthly assessments.             The fact that June continued to
    own a condominium unit results in membership in the Association,
    and an attendant obligation to pay his share of the expenses."
    
    Id. at 377-78.
    If in The Glen the association's improper retaliatory acts
    were inadequate to absolve the unit owner of his obligation to pay
    monthly assessments, plaintiff's alleged failure to maintain some
    common   elements,    or    its   allegedly       retaliatory       slowness      in
    addressing snow and ice, did not absolve defendant from his
    obligation to pay his monthly assessments.               We decline to create
    6                                  A-0145-15T4
    an exception to the unconditional statutory imperative in N.J.S.A.
    46:8B-17.   See High Point at Lakewood Condo. Ass'n v. Township of
    Lakewood, 
    442 N.J. Super. 123
    , 142-43 (App. Div. 2015).           Thus, we
    reject defendant's argument that plaintiff's alleged "breach of a
    material term of an agreement" by not performing maintenance
    "relieved   [him]   of   [his]   obligations   under   the   agreement[s]"
    between the parties.       Cf. Nolan v. Lee Ho, 
    120 N.J. 465
    , 472
    (1990).3
    In The 
    Glen, supra
    , we also established the proper remedy
    when a unit owner claims an association improperly denied services.
    We remanded "for retrial limited to the issue of damages that June
    suffered resulting from the Association's breach of its duty of
    good faith and fair dealing by denying access to June's driveway
    and 
    garage." 344 N.J. Super. at 380
    .     "Those damages are measured
    by the reasonable value of the loss of use of June's driveway and
    garage for the period he was deprived thereof.          The amount found
    3
    We note the following is apparently a basic master deed
    provision: "No Unit Owner may waive or otherwise avoid liability
    for Common Expense Assessments . . . by reason of the Association's
    failure to provide services to this Unit." Smith, Estis, & Li,
    New Jersey Condominium & Community Association Law § 6:7.02, at
    85 (2017).
    7                             A-0145-15T4
    shall be set off against June's obligation for the common areas
    assessments for the period in question[.]"         Ibid.4
    Here, defendant would be entitled to a setoff against his
    assessment obligations for the period in question if he had proved
    he was damaged because plaintiff breached the Condominium Act, the
    master deed, the bylaws, or its duty of good faith and fair dealing
    by   improperly   failing   to   provide   services   or    by   improperly
    retaliating   against   defendant.       Indeed,   defendant     brought    a
    counterclaim claiming such damages.
    Generally, in claims for breach of contract,
    [o]ur law imposes on a plaintiff the burden
    to prove four elements: first, that "[t]he
    parties entered into a contract containing
    certain terms"; second, that "plaintiff[s] did
    what the contract required [them] to do";
    third, that "defendant[s] did not do what the
    contract required [them] to do[,]" defined as
    a "breach of the contract"; and fourth, that
    "defendant[s'] breach, or failure to do what
    the contract required, caused a loss to the
    plaintiff[s]."
    [Globe Motor Co. v. Igdalev, 
    225 N.J. 469
    , 482
    (2016) (alterations in original) (quoting
    Model Jury Charge (Civil) § 4.10A "The
    Contract Claim—Generally" (May 1998)).]
    4
    This remedy resembles a remedy afforded tenants. "[I]n an action
    by a landlord for unpaid rent a tenant may plead, by way of defense
    and set off, a breach by the landlord of his continuing obligation
    to maintain an adequate standard of habitability."       Berzito v.
    Gambino, 
    63 N.J. 460
    , 469 (1973). "This does not mean that the
    tenant is relieved from the payment of rent so long as the landlord
    fails to repair." Marini v. Ireland, 
    56 N.J. 130
    , 146-47 (1970).
    8                              A-0145-15T4
    We now examine whether defendant as counterclaimant proved those
    four elements.
    Here, the parties entered into agreements, including the
    agreement to perform service regarding the roots and payment of
    $3000.     Under that agreement, defendant "'did what the contract
    required [him] to do'" when he made the $1505 initial payment.
    
    Ibid. (citation omitted).5 However,
           it   is   unclear    whether
    defendant established the third and fourth elements.
    Defendant complains the trial court's factual findings in
    this area were "oblique" or non-existent and violated Rule 1:7-
    4(a). A trial court must "find the facts and state its conclusions
    of law thereon in all actions tried without a jury."             R. 1:7-4(a).
    "[T]he trial court is required to make findings of fact and to
    state specific reasons in support of its conclusion."                  Gnall v.
    Gnall, 
    222 N.J. 414
    , 428 (2015).                "Failure to make explicit
    findings    and   clear   statements       of   reasoning    '"constitutes      a
    5
    Otherwise, it is dubious whether defendant did what he was
    required to do, as he failed to pay his monthly maintenance
    assessment.   Because we decide the appeal on other grounds, we
    need not decide whether defendant's failure to pay assessments
    relieves plaintiff of its obligation to maintain the common
    elements associated with his unit, or whether plaintiff's duty to
    perform maintenance of the common elements under N.J.S.A. 46:8B-
    14(a) is as unconditional as defendant's duty to pay maintenance
    assessments under N.J.S.A. 46:8B-17.    Cf. The 
    Glen, supra
    , 344
    N.J. Super. at 377 (finding that "[t]he master deed . . .
    explicitly empowers the Association to suspend a member's
    enjoyment of the common elements until such fees are paid").
    9                                A-0145-15T4
    disservice to the litigants, the attorneys, and the appellate
    court."'"     
    Ibid. (citation omitted). The
    trial court found "there was an agreement and some work
    that was supposed to be done has not been done."               The court also
    found:
    I don't know if it's been proven by a
    preponderance of the evidence, but there
    certainly has been implication that some other
    work that should have been done, like the
    appropriate removal of snow from the grounds,
    which is part of the responsibility of the
    association, there's some overhanging trees
    that have left some markings and residue on
    the roof of the particular condominium and
    those issues have not been addressed by the
    homeowners association.
    Finally, the court found: "There was some testimony that I also
    find credible, that there is a possibility, but not a definite
    possibility     that    when    people   don't     pay     their   homeowners
    association dues, they don't get the top service."
    In this regard, the trial court failed to "'state clearly its
    factual   findings     and   correlate   them    with    the   relevant     legal
    conclusions.'"       
    Ibid. (citation omitted). The
    court's first
    finding suggests defendant proved plaintiff breached the agreement
    to provide service regarding the roots in the front yard.                      The
    court was unclear regarding whether it found by a preponderance
    that plaintiff failed to perform proper service regarding snow
    10                                    A-0145-15T4
    removal and roof maintenance, or that plaintiff retaliated against
    defendant by providing inferior service.
    Defendant argues the defense testimony about these alleged
    failings was undisputed and must have been found as fact because
    the trial court stated: "The testimony that was given by all of
    the witnesses, the Court does deem to and finds it to be credible."
    However, we do not read the court's statement to mean it found as
    fact every single statement every witness uttered.       The contrary
    is indicated by the court's explicit factual findings on specific
    topics    and    by   its   statements   about    "implications"   and
    "possibilit[ies]."
    The trial court's inadequate findings are harmless if there
    was no evidence of damages.      "Defendant had the burden of proof
    to establish all elements of its cause of action, including
    damages."    Cumberland Cty. Improvement Auth. v. GSP Recycling Co.,
    
    358 N.J. Super. 484
    , 503 (App. Div.), cert. denied, 
    177 N.J. 222
    (2003).     Defendant failed to offer any proof of damages for most
    of his claims raising failure to maintain and retaliation.           He
    asked plaintiff's maintenance supervisor about its lawn mowing and
    snow plowing costs but produced no information the trial court
    could use to calculate damages.    Because "the trial judge was left
    to speculate on the extent of defendant's damages" regarding those
    claims, they were properly dismissed.     
    Ibid. 11 A-0145-15T4 Defendant
    did prove that plaintiff and he agreed he would pay
    approximately $3000 if plaintiff performed service regarding the
    roots in the front and back yards, that defendant paid $1505 up
    front, and that plaintiff performed the service on the back yard
    but not on the front yard.        The trial court stated maintenance
    regarding the front and back yards "would cost around $3,000," but
    defendant and plaintiff's former office manager testified the
    $3000 simply represented the back maintenance fees defendant owed
    at that time.      The court posed the question "how much is that
    agreement, in terms of an economic level, worth?"           However, the
    court failed to answer that question.        Because the court did not
    determine the value of the service plaintiff failed to perform on
    the front yard, a remand for findings is necessary.
    If the $1500 was an estimate of the cost of that service, it
    constituted evidence of damages that the trial court should have
    considered in determining whether to offset some or all of that
    amount   against   the   $6615   in   maintenance   assessments   owed   by
    defendant.   Even if the $1500 was just half of defendant's unpaid
    maintenance assessments, the agreement made defendant's payment
    of the $1500 contingent on the performance of the maintenance and
    thus entitled defendant to setoff the cost of such maintenance if
    not performed.
    12                          A-0145-15T4
    Accordingly, we affirm the trial court's award of $6615 in
    unpaid common expenses and $2435.12 in counsel fees and costs.             We
    vacate the dismissal of defendant's counterclaim and remand to the
    trial court to make findings of fact regarding whether defendant
    should   be   credited   with   a   setoff   of   some   or   all   of   the
    approximately $1500 due to plaintiff's failure to perform the
    requisite maintenance on the roots in the front yard.           The court
    may permit submission of further evidence on that issue in its
    discretion.    We do not retain jurisdiction.
    Affirmed in part, vacated in part, and remanded.
    13                              A-0145-15T4