Robinson v. 160 Spring Valley RD LLC

Docket NumberA-1271-21
Decision Date07 July 2023
PartiesJOHN ARTHUR ROBINSON and LUCILLE DINA COLUMBO ROBINSON, Plaintiffs-Respondents/ Cross-Appellants, v. 160 SPRING VALLEY RD LLC, and 47TH STREET GROUP, LLC, Defendants-Appellants/ Cross-Respondents, and LAW OFFICE OF MARK J. SOKOLICH, ESQ., Defendant.
CourtNew Jersey Superior Court — 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.

Submitted February 28, 2023

Graff Silverstein LLP, attorneys for appellants/cross-respondents (David Graff, on the briefs).

Meyerson, Fox, Mancinelli & Conte, PA, attorneys for respondents/cross-appellants (Andrew P. Bolson and Erik Topp on the briefs).

Before Judges Gilson, Gummer, and Messano.

PER CURIAM

In this residential-construction dispute, defendants 160 Spring Valley Rd LLC and 47th Street Group, LLC appeal and plaintiffs John Arthur Robinson and Lucille Dina Columbo Robinson cross-appeal an order granting summary judgment as to plaintiffs' breach-of-contract claim, dismissing with prejudice plaintiffs' fraud claims and defendants' counterclaims, and requiring the return of plaintiffs' $90,000 down payment. We affirm.

I.

We discern the material facts from the summary-judgment record viewing the evidence in a light most favorable to the non-moving party. See Rivera v. Cherry Hill Towers, LLC, 474 N.J.Super. 234, 238 (App. Div. 2022).

At the time of the transaction at issue, plaintiffs were a married couple, residing in a house in Franklin Lakes. John was an equities trader, and Lucille was the community director of the Franklin Lakes Recreation and Parks Department.[1] Their two children were attending the University of Miami. Plaintiffs owned two properties: their home in Franklin Lakes and a townhouse in Parkland, Florida. Defendants are developers of a series of condominium units in Montvale.[2]

On December 10, 2019, John executed a document entitled "THE ALEXA CONDOMINIUM AGREEMENT OF SALE OF REAL ESTATE" (the "Agreement"). In the Agreement, plaintiffs were identified as the buyer, and defendants were identified as the seller. Someone executed the Agreement on behalf of 47th Street Group, LLC. As set forth in the Agreement, plaintiffs were purchasing a "Unit" located in the Alexa Condominium in Montvale. The "TOTAL PURCHASE PRICE" was $900,000. As required by the Agreement, plaintiffs paid a $90,000 deposit, delivering it to defendant's attorney.

According to the Agreement, the "approximate location, size and layout of the Unit . . . may be found in Exhibit 'C' of the Condominium's Master Deed." In paragraph four of the Agreement, defendants "agree[d] to include in the construction of the Unit the items set forth in the Standard Features Sheet, a copy of which is attached." In paragraph thirteen, the parties agreed:

STANDARD CHOICES: SUBSTITUTION OF MATERIALS: All of the standard items are set forth in the attached Standard Features Sheet. If any standard item becomes unavailable or the Seller elects to replace it with a similar product, the Buyer authorizes the Seller to substitute these materials, appliances, equipment, etc. with others of equal or better quality. The Seller does not offer any options, upgrades or extras.

In paragraph fifteen, which was entitled "SELLER'S LIMITED WARRANTY," the parties agreed, among other things:

(5) The Seller warrants that the Unit is fit for its intended use.
. . . .
(8) The Seller warrants that the Unit and the Common Elements will substantially conform to the sales models, display boards, Standard Features Sheet, descriptions or plans used to induce the Buyer to sign this Agreement, unless otherwise provided in this Agreement. THE BUYER UNDERSTANDS THAT THE SELLER'S SAMPLES MAY CONTAIN EXTRAS THAT ARE NOT INCLUDED IN THE BASE PRICE OF THE UNIT. THE SELLER WILL CLEARLY MARK THESE EXTRAS IN THE SAMPLES.

In paragraph twenty-four, which was entitled "ALTERATIONS," the parties agreed:

Construction will be substantially in accordance with the plans and specifications of Seller, except for extras specifically authorized by Purchaser. The Seller will not accept any request from the Buyer to alter the construction plans and specifications. No one is permitted or authorized to commit the Seller to make any such alterations.

Paragraph twenty-six, which was entitled "BREACH OF A PROMISE BY THE BUYER," stated, among other things:

The Buyer and the Seller acknowledge that the plans and specifications for the unit to be constructed have been specifically prepared for and approved by the Buyer that this unit is therefore unique by reason of this Buyer's specific requests and determinations.

Regarding closing, the Agreement provided:

The Buyer will be under no obligation to close title unless the Seller provides a [t]emporary or [p]ermanent [c]ertificate of [o]ccupancy issued by the Borough of Montvale at or before the time of closing of title. The Buyer agrees that he/she and his/her selected lender will close title and pay all money due the Seller after the [c]ertificate of [o]ccupancy is issued even though certain outside work has not been completed, such as landscaping installation and the installation of the driveway. Under no circumstances shall any escrow be held at or prior to closing with respect to incomplete or "punchlist" items.

The parties agreed that in the event of a default, "the sole responsibility of [defendants] for non-performance under this [a]greement for reasons beyond [defendants'] control shall be limited to the return of deposit monies . . . ." The Agreement also contained an integration clause:

ENTIRE AGREEMENT: This Agreement, the [a]pplication for [r]egistration filed with the New Jersey Department of Community Affairs, and the [p]ublic [o]ffering [s]tatement contains the entire agreement between [defendants] and [plaintiffs]. Neither party has made any other agreement or promise which is not contained in this Agreement.

John's signature appeared on a page of the Agreement that was numbered thirteen. The signature of the representative of 47th Street Group, LLC appeared on the following page, which was numbered fourteen. On page fourteen, after the signature of 47th Street Group, LLC's representative and lines for information about the parties' attorneys, the following was set forth:

Additional provisions and Pictures attached
Buyer to pay $100,000 for Appliance upgrades AT CLOSING
Ground Level
- tiled basement
-finished full bath
-built in bar extended on side wall (pictures to relate)
-paneled back wall
-6 high hats, 1 flushmount
-elevator shaft built out closet, coat closet built out
Second Floor
- 1 foyer wall paneled
- small mudroom in entry foyer
- full molding package
- built in breakfront for dining room
- powder room as per #203 no panel
- 42inch counter depth sub zero
- wolf 6 burner 36 inch induction cooktop
- 427 r sub zero wine cooler refrigerator
- mosaic backsplash within budget
- quartz countertop and quartz fireplace matching
- #402 center island (blue, light grey color)
- white porcelain farmhouse sink
Third Level
- TV built in with cabinets below as per #405 in Master bedroom alcove
- MDF makeup station as extension from double vanity in Master Bedroom
- kids bath as is
- shower glass doors on all showers or tubs
- full trim package crown in all hallways and bedrooms
4th level
- 2 single beds with built ins around window (as per photos)
- built in across back wall as in #201 and #405 (no glass doors in middle area, use for Television)
- hardwood floors in loft

The next page, which was numbered fifteen, contained one line:

- all soft closing hinges throughout home[.]

On September 9, 2020, Montvale's Construction Code Official, Christopher Gruber, conducted an inspection of the Unit. The Unit had been approved only as a three-bedroom townhome. Gruber refused to issue a certificate of occupancy with built-in beds on the fourth floor of the Unit. Gruber determined that the "[f]ourth[-]floor bedroom, must be removed, not ready" because

This particular unit had two custom built-in beds . . . on each side with French doors closing off, making a bedroom on the left and the right side when you got to the top of the stairs into the loft area, and that's not allowed by code and it was not allowed - it was not approved by the planning board for bedrooms up there.

Gruber believed the fourth-floor "attic space" was uninhabitable because it did not comply with a section of International Residential Code requiring emergency escape and rescue openings. Gruber testified, "[i]t's a dangerous issue . . . . It's a code that you're not allowed to have a bedroom, any bedroom anywhere in your house that doesn't have any egress out of it." According to Gruber, project manager Felix Herrera advised him that "the homeowner that was purchasing that unit required these beds." Gruber told Herrera, "he can't have them up there as per the code."

In a September 10, 2020 email message, Herrera advised plaintiffs that "final building inspection [had] stop[ped] by to inspect the home and, unfortunately, they are not allowing any bedrooms in the loft." Herrera told plaintiffs he would "have to remove the beds to get the final inspection. Peter says that you guys can install [the beds] after the closing."[3] John responded to Herrera the next day advising that the "inability to have bedrooms in the loft is a deal breaker. The sole reason we bought the place was because of the added bedrooms in the loft." He asked Herrera to "[w]ork with the town to get the necessary...

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