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Bogus & Retaliatory Lien Placed on Our Condo

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ghtix

Junior Member
What is the name of your state (only U.S. law)? NJ.

Not so much a question, but the latest on our saga:

We are in the middle of litigation - suing our condo association on eight counts of violations. We have a 5-person board (for a 9-unit condo association, no less) but one person - the Prez. - calls the shots - tells the attorney what to do - with no board meetings, no board decisions, only this one person's directives. BTW, the Association attorney has no ethics. He is perpetuating the animosity (it lines his pockets) - we have offered to mediate / arbitrate in the past - no response from them. Litigation was our last resort.

They already filed a motion to dismiss the entire complaint, but the judge denied it, so we march forward with discovery, and an eventual trial.

So now, while we're waiting for them to file an answer to the complaint, out of the blue a couple of days ago, the Association attorney files a lien against our condo for over $6100, despite the fact that we have never seen a bill, invoice, or other written charge presented to us.

In July, they sent a collection letter, saying that we owed $6100 the Association's attorney fees (which doesn't add up) - we asked for invoices, but they refused to give them - just wanted us to send money. We disputed the collection letter immediately and demanded - in writing - verification of the debt - which never came.

The alleged debt also includes a $600 "assessment" that was sent to us via email from the Association President only - we put the money in escrow with our attorney and asked for documentation that the Board levied this assessment, upon which payment would be sent - which never came.

Because of this, the Prez. unilaterally declared us "not in good standing" - we asked for ADR, which is our legal right, but he denied it. Stupid.

Then, in the past few days, our lawyer gets notice that a lien has been filed for this amount - over $6100. It has been recorded with the County - on their website for all to see. The Prez. directed the attorney to do it.

Our title has been slandered. The debt was never verified. In addition to the fact that the Board never approved this lien, or any such assessment, they are in violation of the NJ Condo Act and the Fair Debt Collection Practices Act. We plan to fight this now - along with all of the other counts we are fighting.

I asked out lawyer if an Order to Show Cause (for the lien) would be in order - he said that it would add more money to our bill, and he can and will fight it along with everything else - that it will come out that they breached the FDCPA & Condo Act when they filed the lien.

Needless to say, we are living a nightmare. We are a senior citizen couple - being treated like dirt and second class citizens for standing up for our rights.

The other counts in the complaint include:
Failure to produce books & records upon multiple requests
Failure to have an audit done
Failure to maintain a separate account for each unit
Failure to maintain adequate reserves
Failure to collect insurance premiums as part of the Common Expense Assessment
Holding closed & unannounced Board meetings
Illegally-instituted amendments
Denying us ADR and due process upon our written requests
Etc.

We are pushing forward, but don't know how the money will hold out down the road.

More updates later.What is the name of your state (only U.S. law)?
 


FlyingRon

Senior Member
Hopefully you have a good lawyer.

If you prevail in a civil action the lien will most likely be dismissed in course.

FDCPA doesn't apply to the association trying to collect their own debts. It only applies to third party collection agencies.

I don't give you much hope on some of your claims but hopefully your lawyer knows better than us. This is the insidious problem with suing condos and HOAs, they'll defend themselves with your own money.
 

ghtix

Junior Member
We found this caselaw: LOIGMAN v. KINGS LANDING CONDOMINIUM ASSOCIATION INC.

Link: - LOIGMAN v. KINGS LANDING CONDOMINIUM ASSOCIATION INC - NJ Superior Court

This is very similar to our situation - as in this case, the court treated the lien as a debt, and in our case, the Association did send a collection letter and treated it as a debt.

Also, as a result of our cross-motion (to their motion-to-dismiss) the judge already ordered (1) an audit (2) production of an accounting for each unit on a monthly basis (3) collecting insurance premiums as part of the Common Expense Assessment (4) all documents to be bate-stamped. The rest will go through discovery.

So far, things aren't looking good for them, hence this added bit of maliciousness (lien).

So far we are satisfied with our lawyer.

Also - we are suing for punitive damages on most counts - and the judge allowed us to amend the complaint to specifically recite the language of the punitive damages statute. If punitive damages were ever in order, it's in this case.
 

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