Judge denies motions, Ramapo Mountain Lakes HOA lawsuit to proceed

By Deborah Goonan, Independent American Communities

Ramapo Mountain Lakes Association (RML) must proceed to make its legal case to enforce collection of lake maintenance assessments from owners of all 1,645 properties in the community.

Judge Christine Farrington dismissed summary judgment on behalf of RML, and also denied a homeowners’ motion to dismiss the lawsuit, calling both motions “premature.”

Both parties in the dispute are now required to present evidence to support their claims.

The case will involve delving into property records dating back to the 1940s, and attempts to locate missing RML stock certificates that were allegedly conveyed to original property owners.

Attorneys will also need to thoroughly research the history of RML board of trustees’ decisions and actions over the years, including past collections efforts, and the decision to open up Crystal Lake membership to non-residents.

No doubt, homeowners’ claims of nondisclosure of their obligations to contribute to annual maintenance of lakes in RML will be central to defense arguments.

If homeowners are compelled by the court to pay lake assessments to RML, even in the absence of pre-sale disclosure, it could create significant negative implications for private property rights.

The outcome of this case could also impact the future of other lake communities in New Jersey and other states.

 

UPDATE:

Judge rejects attempts to end Ramapo Mountain Lakes lawsuit
Marsha Stoltz, Staff Writer, @Marsha_Stoltz Published 5:24 p.m. ET Sept. 28, 2017 | Updated 8:57 a.m. ET Sept. 29, 2017

HACKENSACK — A Superior Court judge rejected attempts Thursday to put an end to a controversial dues lawsuit that has roiled a former summer resort community in Oakland since the beginning of the year.

Judge Christine Farrington denied a motion by Ramapo Mountain Lakes, Inc., or RML, for a summary judgment that would have ordered 1,645 property owners in the 700-acre site to pay annual membership dues, even though many residents argue they were never notified of their obligations and should not have to pay.

The judge also denied a motion brought by the residents to dismiss the lawsuit on the premise that RML has no standing to charge them membership dues.

Farrington called the motions “premature” and ordered attorneys for both sides to organize a schedule to present more information in support of their positions. The attorneys’ suggestions must be submitted to the judge for approval.

Read more (Video):

http://www.northjersey.com/story/news/bergen/oakland/2017/09/28/judge-rejects-attempts-end-ramapo-mountain-lakes-lawsuit/713646001/

 

Hundreds of NJ homeowners continue class action lawsuit against HOA lake assessments

Originally published on August 23, 2017

By Deborah Goonan

 

Public domain photo of unknown lake.

 

Occasionally I hear from homeowners who want to know if they can be forced to pay assessments for a property owners’ or lake association, one they had not been made aware of at the time they purchased their home.

The answer is, it depends.

Sometimes, it all comes down complicated legal interpretations of decades-old deeds, titles, and covenants legally filed at the County recorders office.

Take Ramapo Lakes Association (RML), located in the Borough of Oakland, New Jersey, for example. The lakeside community started life as a vacation destination in 1944. At the time, the RML was set up as a stock corporation, rather than a non-profit homeowners’ association. But over the decades, the community changed to a year-round residential neighborhood, and stock certificates got lost in the shuffle as properties changed hands multiple times.

The result was that a majority of owners representing 1,645 homes had no idea they were purchasing property that  would be obligated to pay Property & Maintenance (P&M) fees for Crystal and Mirror Lakes.

For decades, RML collected voluntary association dues from members of its Crystal Lake Beach Club, and even began selling club memberships to the general public to help balance its budget.

But in 2012, thousands of owners were shocked to receive invoices for annual assessments from RML, including non-Club members, most of whom do not live on either lakeshore.

Of course, homeowners objected. Several of them consulted attorneys, and a class action lawsuit is now in process. The deadline for joining the class action suit ended several weeks ago. Other homeowners who have not joined in class action are working with their title insurance companies to resolve the matter in court.

 

Oakland residents face deadline in dues suit

Marsha A. Stoltz, Staff Writer Published 5:00 a.m. ET July 28, 2017 | Updated 11:11 a.m. ET July 28, 2017

 

OAKLAND — With a deadline set for Friday, residents of a former summer community have a decision to make: Will they fight claims that they owe back dues to a homeowners’ association, or give up and pay a group that many say they had no idea they were part of?

The association, Ramapo Mountain Lakes, has filed suit against the 1,645 property owners, claiming they are members of the association and that RML has legal standing to collect dues retroactively and in the future to finance the care of Crystal and Mirror lakes, which are both owned by the association.

About 700 of the owners or their title companies have already asked to be represented by two of the law firms assigned to organize the defendants into more manageable-sized groups – Cole Schotz in Hackensack and Saul Ewing in Princeton.

Read more:

http://www.northjersey.com/story/news/bergen/oakland/2017/07/28/oakland-residents-face-deadline-dues-suit/444147001/

 

Ramapo Mountain Lakes Association is the site of Crystal Lake Beach Club.  Club membership is voluntary and open to the public, offering  swimming, boating, fishing, and  sandy beach area for sunbathing and picnicking nearby. RML corporation owns and manages both Crystal and Mirror Lakes, and is responsible for their ongoing maintenance.

The most recent explanation of the class action lawsuit is posted below.

Source: http://www.crystallakenj.com/rml-urgent-shareholder-information

 

 

Note that the court could decide that all owners are legally obligated to pay assessments to a Lake HOA that they never even knew about until 2012. And if the court finds that all shareholders in RML must pay annual P&M for the lakes, homeowners could also be on the hook for all unpaid assessments beginning in 2012, including those that became due under a previous homeowner.

The court could also decide that RML has no right to collect mandatory fees, under the complex circumstances, but the ultimate outcome has yet to be determined. The fact that a significant legal controversy exists proves that the issue is not easily resolved.

 

What started the dispute?

The RML controversy began in 2012, following a flood caused by an overflow of Crystal Lake in 2011.

Homes flooded by Ramapo River on Lakeshore Dr Oakland NJ

By TwisterNJ | Posted August 28, 2011 | Oakland, New Jersey

Lakeshore Dr divides Crystal Lake and Ramapo River in Oakland NJ. Ramapo River flooded over Lakeshore Drive into Crystal Lake flooding numerous homes in the area. Cresting was still to come. The Devastation was traumatic for homeowners and neighbors.

http://ireport.cnn.com/docs/DOC-664427

 

As explained numerous times here on IAC, private maintenance and management of infrastructure is sorely lacking, particularly when it comes to effective stormwater management and flood control.

For many decades, RML did not adequately maintain its spillway nor its flood gates. And apparently Oakland Borough did not intervene until 2011-2012, when elected officials faced complaints from homeowners on Lakeshore Drive.

By 2013, Oakland Borough and residents of Crystal Lake were mired in conflict over when and how to reduce lake levels during significant rain events to prevent flooding. The Borough voted to follow a 1975 protocol for rain events of one inch or more: Oakland agreed to open its flood gates, and Ramapo Mountain Lake (RML) association reluctantly agreed to close its gates to prevent flooding on Lakeshore Drive.

At the time, some RML members complained that reducing lake levels would diminish the recreational value of Crystal Lake.

Amidst Controversy, Borough Will Continue Review of Crystal Lake Flood Management

Officials at a special meeting Wednesday night told residents that more data will be needed to determine what the final protocol on overflow gates at the lake will be.

By Devin McGinley (Patch Poster) – Updated June 20, 2013 4:37 am ET

Facing some controversy surrounding it’s adoption of flood control protocols at Crystal Lake, the borough told residents at a special meeting Wednesday night that it would continue to review the procedures as more information becomes available.

Last month, a meeting between the mayor and borough professionals hammered out a protocol, based on a 1975 settlement with residents around the lake, to open overflow gates anytime weather forecasts predicted an inch or more of rain within a 24 hour period.

“The next morning,” Mayor Linda Schwager said, “I was bombarded with emails, threats and nasty comments.”

Since the protocol was adopted, it has been used in five rain storms, though four of them exceeded two inches of rain, leaving the borough with little data on which to test the effectiveness of the policy.

“We’re trying to get enough of a sample size to make decisions going forward,” said Kevin Boswell, the borough’s engineer, explaining that the borough would have to review the impact of more one-inch storms to determine whether the protocol needed tweaking.

While Lakeshore Drive residents that have seen the water edge onto their properties in recent storms had pushed for the borough’s action, others saw the move as an unnecessary procedure that diminished the recreation value of the lake.

Read more:

https://patch.com/new-jersey/oakland/amidst-controversy-borough-will-continue-review-of-cr97668b91e3

 

By 2012, it had become apparent to RML that the aging dam in Crystal Lake needed costly repair. That is when the board members of the Association decided to issue invoices to all 1,645 property owners.

 

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One Reply to “Judge denies motions, Ramapo Mountain Lakes HOA lawsuit to proceed”

  1. They will have their hands full, anytime anyone files a court case against any HOA do your research first get the evidence get the legal documents to support your case, things will go much smooth, and if your state has laws for records request against your HOA use them to their fullest make sure you follow your State Laws. If your state does not have this law in your state push have one place in the law for records request that can and will fine the HOA everyday those records are late getting to you. Send certified letters to your HOA for records request they must keep records its the law in some states. Its a very hard tasks to gather records leave no stone unturned. Be careful with companies that are also in another state you will have to look records up in that state as well HOA companies/developers do this all the time, so they can hide records be very specific in your request. I wish them the best of luck. Also try title searches.

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