{"id":3073,"date":"2017-11-21T13:31:24","date_gmt":"2017-11-21T18:31:24","guid":{"rendered":"https:\/\/www.lindabury.com\/firm\/?p=3073"},"modified":"2019-12-23T18:12:33","modified_gmt":"2019-12-23T23:12:33","slug":"homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html","title":{"rendered":"Homeowners Association Not Bound by Arbitration Provision Contained in Contract Between Buyer and Developer"},"content":{"rendered":"<p>The New Jersey Appellate Division&#8217;s decision in Greenbriar Oceanaire Community Association, Inc. v. U.S. Home Corporation, issued on November 16, 2017, determined that a Homeowners Association was not required to arbitrate any disputes with a developer, and, when faced with a motion to compel arbitration, was permitted to file an amended complaint separating out those claims that are not subject to the arbitration agreement.<\/p>\n<p>The association involved in the dispute is responsible for the common areas, administration, and management of a 1425-unit residential community in Waretown, New Jersey. The defendant, U.S. Home Corporation d\/b\/a Lennar Corporation, was the sponsor and developer of the project, who ultimately transferred management to the association. In its June 2015 complaint, which was twice amended, the association, on behalf of itself and its members, being the homeowners bound to arbitration clauses, asserted numerous causes of action, including: design and manufacturing defects that the association claims constituted violations of applicable building codes and warranties, as well as various violations of the Planned Real Estate Development Full Disclosure Act (PREDFDA), and the developer\u2019s breach of its fiduciary duties.<\/p>\n<p>In light of the arbitration agreement contained in the developer\u2019s contracts with the association\u2019s homeowners, the developer moved to compel arbitration. By the time the motion was considered, the parties settled the design and construction claims. As a result, the question for the motion judge was whether the remaining claims, including those arising under the PREDFDA, and the fiduciary duty claims, were asserted on behalf of the homeowners and therefore subject to the homeowners&#8217; promise to arbitrate with the developer, or whether the claims should be viewed as belonging only to the association, which never agreed to arbitrate any disputes with the developer. By way of his oral decision, the motion judge agreed with the developer&#8217;s view and entered an order compelling arbitration, and later denied a motion to vacate the order compelling arbitration.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html\"  title=\"Continue Reading Homeowners Association Not Bound by Arbitration Provision Contained in Contract Between Buyer and Developer\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The New Jersey Appellate Division&#8217;s decision in Greenbriar Oceanaire Community Association, Inc. v. U.S. Home Corporation, issued on November 16, 2017, determined that a Homeowners Association was not required to arbitrate any disputes with a developer, and, when faced with a motion to compel arbitration, was permitted to file an amended complaint separating out those [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[236,65,248,249],"tags":[],"coauthors":[168],"class_list":["post-3073","post","type-post","status-publish","format-standard","hentry","category-b-width","category-insights","category-litigation-insights","category-real-estate-land-use-zoning-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Homeowners Association Not Bound by Arbitration Provision Contained in Contract Between Buyer and Developer &#8212; November 21, 2017 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. Firm News &amp; Events<\/title>\n<meta name=\"description\" content=\"The New Jersey Appellate Division&#039;s decision in Greenbriar Oceanaire Community Association, Inc. v. U.S. Home Corporation, issued on November 16, 2017,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Homeowners Association Not Bound by Arbitration Provision Contained in Contract Between Buyer and Developer &#8212; November 21, 2017 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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U.S. Home Corporation, issued on November 16, 2017,","og_url":"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html","og_site_name":"Lindabury, McCormick, Estabrook &amp; Cooper, P.C. Firm News &amp; Events","article_published_time":"2017-11-21T18:31:24+00:00","article_modified_time":"2019-12-23T23:12:33+00:00","author":"Blake C. Width","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Blake C. Width","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html#article","isPartOf":{"@id":"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html"},"author":{"name":"Lindabury, McCormick, Estabrook &amp; Cooper, P.C.","@id":"https:\/\/www.lindabury.com\/firm\/#\/schema\/person\/429b3bd6b52a7aa6eb9a0709bbb4d06f"},"headline":"Homeowners Association Not Bound by Arbitration Provision Contained in Contract Between Buyer and Developer","datePublished":"2017-11-21T18:31:24+00:00","dateModified":"2019-12-23T23:12:33+00:00","mainEntityOfPage":{"@id":"https:\/\/www.lindabury.com\/firm\/insights\/homeowners-association-not-bound-arbitration-provision-contained-contract-buyer-developer.html"},"wordCount":615,"articleSection":["Blake C. 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