SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-809-00T5
224 JEFFERSON STREET
CONDOMINIUM ASSOCIATION,
Plaintiff-Appellant,
v.
EMANUEL G. PAIGE, SR.,
Defendant-Respondent.
Submitted October 23, 2001 - Decided January 10, 2002
Before Judges Skillman, Wallace, Jr. and Carchman.
On appeal from Superior Court of New Jersey, Law
Division, Hudson County, LT-12443-00.
Robert C. Matule, attorney for appellant.
Cathy C. Cardillo, attorney for respondent.
The opinion of the court was delivered by
CARCHMAN, J.A.D.
This appeal requires us to consider whether N.J.S.A. 2A:18-
61.1(l)(2) (subsection 2) of the Anti-Eviction Act, N.J.S.A.
2A:18-61.1 to -61.12 (the Act), requires the owner of less than
three condominium units to provide three years notice to evict a
tenant upon sale of the unit absent a formal lease notice
provision as required by N.J.S.A. 2A:18-61.9 (section 61.9). The
trial judge, relying in part on N.J.A.C. 5:24-1.9, held that the
notice provision, clearly applicable to N.J.S.A. 2A:18-61.1(l)(1)
(subsection 1), applied with equal force to subsection 2, and
dismissed plaintiff 224 Jefferson Street Condominium
Association's (the Association) tenancy complaint. He further
concluded that absent compliance with section 61.9, the court was
without jurisdiction to consider plaintiff's dispossession
action. We disagree and conclude that the notice provisions of
section 61.9 do not create a jurisdictional bar to actions
prosecuted under subsection 2. Accordingly, we reverse and
remand the matter to the Special Civil Part.
These are the facts adduced at trial. Plaintiff owns two
condominiums units in an eight-unit building located in Hoboken.
The condominium conversion of the eight units was effectuated by
the filing of a master deed in the Hudson County Register's
Office in July 1986. Thereafter, the two units were conveyed to
plaintiff. Plaintiff entered into a written month-to-month lease
agreement with defendant Emanuel G. Paige, Sr. in October 1998.
Although defendant resided in the apartment with his grandmother
for an extended period of time, both parties agree that defendant
is a post-conversion tenant. The penultimate provision of the
lease agreement states:
31. Landlord shall provide Tenant with
a sixty (60) day notice to quit
pursuant to N.J.S.A. 2A:18-
61.1(l)(2) because the owner has
contracted to sell the Unit to a
buyer who wishes to personally
occupy it and the Contract of Sale
calls for the Unit to be vacant at
the time of closing.
On March 2, 2000, plaintiff entered into a contract of sale
for the unit, which was later amended to include plaintiff's
obligation to serve a sixty-day notice on defendant because of
the buyer's desire to personally occupy the premises. Nine days
later, on March 31, 2000, Michael Van Hagan, a member of the
Association, served defendant with a sixty-day Notice to Quit,
terminating defendant's tenancy as of June 1, 2000. On June 1,
2000, defendant refused to vacate the premises.
Plaintiff then instituted a tenancy action in the Special
Civil Part seeking possession of the unit. The trial judge
concluded that defendant was entitled to three years notice prior
to commencement of the tenancy action, and such requirement was
jurisdictional. He then dismissed the complaint.
On appeal, plaintiff asserts that under the facts presented
before the trial judge, a sixty-day notice to quit under
subsection 2 was required rather than three years notice. We
commence our analysis by reviewing the relevant statutory
provisions. The Act was adopted in 1974 in "recognition of the
severe housing shortage in the state." A.P. Dev. Corp. v. Band,
113 N.J. 485, 492 (1988). The Act affords "residential tenants
the right, absent good cause for eviction, to continue to live in
their homes without fear of eviction . . . and thereby to protect
them from involuntary displacement." Morristown Mem'l Hosp. v.
Wokem Mortgage & Realty Co.,
192 N.J. Super. 182, 186 (App. Div.
1983).
The Act reflects a public policy barring dispossess actions
except upon strict compliance with the notice and procedural
requirements of the Act. Montgomery Gateway East I v. Herrera,
261 N.J. Super. 235, 241 (App. Div. 1992); Bayside Condos., Inc.
v. Mahoney,
254 N.J. Super. 323, 325 (App. Div. 1992). We have
defined "strict compliance" as "punctilious" compliance with all
of the Act's provisions, including the notice provisions. Weise
v. Dover Gen. Hosp.,
257 N.J. Super. 499, 504 (App. Div. 1992)
(citations omitted). We have required strict compliance even
though the landlord has acted in good faith or the tenant has not
been prejudiced. Ibid. As we previously observed, "the statute
leaves no latitude for a judicial construction which excuses
failure to give the specified notice." Vander Sterre Bros.
Constr. v. Keating,
284 N.J. Super. 433, 438 (App. Div. 1995).
In sum, absent strict compliance with the requirements of the
Act, a court is without jurisdiction to entertain a summary
dispossession action. Bayside, supra, 254 N.J. Super. at 326-27;
809-811 Washington St. Assocs. v. Grego,
253 N.J. Super. 34, 42
(App. Div. 1992) (noting that compliance with the Act is
jurisdictional prerequisite to the institution of a summary
dispossess action).
Against this framework, we now examine the provisions at
issue here. The Act assures a condominium owner the right to
evict a tenant whenever the owner sells the unit to a buyer who
will personally occupy it. N.J.S.A. 2A:18-61.1(l). The
operative provisions of the Act establish varying notice
requirements dependent upon the type of tenancy, post-conversion
or pre-conversion, the number of units owned by a landlord in a
building, and the number of units in that building.
The Act provides greater protection to pre-conversion
tenants in buildings with more than three units by requiring
three years notice before removal. See N.J.S.A. 2A:18-61.2(g)
(providing for a three-year notice requirement for removal of
pre-conversion tenants protected by N.J.S.A. 2A:18-61.1(k)). The
provision before us, N.J.S.A. 2A:18-61.1(l), applying to post-
conversion tenants, establishes a two month notice requirement.
N.J.S.A. 2A:18-61.2(f); Kabakian v. Kobert,
188 N.J. Super. 517,
520 (App. Div. 1983). As the parties have stipulated that
defendant is a post-conversion tenant, paragraph (l) of section
2A:18-61.1 is the focus of our inquiry.
Paragraph (l) applies to all post-conversion evictions where
an owner has contracted to sell the unit to a buyer who wishes to
personally occupy it, and the contract for sale calls for the
unit to be vacant at the time of closing. The relevant
subparagraphs of paragraph (l) provide as follows:
(1) The owner of a building or mobile home
park, which is constructed as or being
converted to a condominium . . . seeks to
evict a tenant or subleasee whose initial
tenancy began after the master deed . . . was
recorded, because the owner has contracted to
sell the unit to a buyer who seeks to
personally occupy it and the contract for
sale calls for the unit to be vacant at the
time of closing. However, no action shall be
brought against a tenant under paragraph (1)
of this subsection unless the tenant was
given a statement in accordance with
[N.J.S.A. 2A:18-61.9];
(2) The owner of three or less condominium
. . . units seeks to evict a tenant whose
initial tenancy began by rental from an owner
of three or less units after the master deed
. . . was recorded, because the owner . . .
has contracted to sell the unit to a buyer
who seeks to personally occupy it and the
contract for sale calls for the unit to be
vacant at the time of closing;
(3) The owner of a building of three
residential units or less . . . has
contracted to sell the residential unit to a
buyer who wishes to personally occupy it and
the contract for sale calls for the unit to
be vacant at the time of closing.
[N.J.S.A. 2A:18-61.1(l) (emphasis added).]
Section 61.9, referred to in subsection 1, provides:
Any owner who establishes with a person an
initial tenancy after the master deed . . .
was recorded shall provide to such person at
the time of applying for tenancy and at the
time of establishing any rental agreement a
separate statement as follows:
"STATEMENT
THIS BUILDING (PARK) IS BEING CONVERTED TO OR
IS A CONDOMINIUM OR COOPERATIVE (OR FEE
SIMPLE OWNERSHIP OF THE SEVERAL DWELLING
UNITS OR PARK SITES). YOUR TENANCY CAN BE
TERMINATED UPON 60 DAYS' NOTICE IF YOUR
APARTMENT (PARK SITE) IS SOLD TO A BUYER WHO
SEEKS TO PERSONALLY OCCUPY IT. IF YOU MOVE
OUT AS A RESULT OF RECEIVING SUCH A NOTICE,
AND THE LANDLORD ARBITRARILY FAILS TO
COMPLETE THE SALE, THE LANDLORD SHALL BE
LIABLE FOR TREBLE DAMAGES AND COURT COSTS."
The parenthesized words shall be omitted or
substituted for preceding words where
appropriate. Such statement shall also be
reproduced as the first clause in any written
lease provided to such person.
[N.J.S.A. 2A:18-61.9.]
This notice provision is referred to not only in subsection 1,
but in an administrative regulation issued by the Department of
Community Affairs (DCA). This regulation states:
(a) Any tenants who begin their initial
tenancy after the master deed . . . is filed
by the owner must be provided at the time of
applying and at the establishment of a rental
agreement with a separate statement
conforming exactly to the words in capital
letters which follow.See footnote 11 The statement must be
included as the first clause of any written
lease.
. . . .
(b) If a tenant whose tenancy began after the
conversion was initiated and was not given
proper notice as provided in (a) above, the
tenant will have the right to a three year
notice as provided for in the previous
portion of these regulations.
(c) If an owner has given the proper
statement as part of the lease as described
in (a) above, the owner will still be
required to provide a 60-day notice prior to
instituting court action for eviction which
specified the cause in detail and is served
personally as required for any eviction. The
notice must say that the apartment has been
sold to a buyer who seeks to personally
occupy it.
[N.J.A.C. 5:24-1.9 (emphasis added).]
The regulation further provides:
(a) The landlord, whether the owner of the
building or of the unit, can be liable to a
former tenant in a civil action for triple
damages plus attorney's fees and court costs
for violating the requirements of N.J.A.C.
5:24-l.9.
(b) This penalty of triple damages plus
attorney's fees and court costs is also
applicable where a tenant vacates the
premises after being given a notice alleging
that the landlord seeks to personally occupy
the premises under paragraph L of N.J.S.A.
2A:18-61.1, and the landlord thereafter
arbitrarily fails to execute the contract for
sale or take personal occupancy, but instead
permits personal occupancy by another tenant.
. . . .
(d) A tenant must sue in a civil court action
to recover any such damages.
[N.J.A.C. 5:24-1.10.]
The trial judge held that the regulatory mandate applies not only
to subsection 1, but to subsection 2, as well.
Since the parties here have stipulated that plaintiff owns
two units in an eight-unit building, plaintiff has contracted to
sell the unit to a buyer who wishes to personally occupy it, and
the contract for sale calls for the unit to be vacant at the time
of closing, subsection 2 applies. Plaintiff argues, however,
that the plain language of the statute demonstrates that
compliance with section 61.9 is only a jurisdictional
prerequisite of subsection 1, not subsection 2. Defendant
counters that the administrative regulations have applied section
61.9 to subsection 2, creating the same underlying jurisdictional
requirement.
In distinguishing between "the owner of a building"
(subsection 1) and "the owner of three or less units" (subsection
2), the Legislature established a different requirement for the
latter by mandating less stringent standards for eviction, which
were based on the number of units owned or extant in the
building. See Bayside, supra, 254 N.J. Super. at 327; Veltri v.
Norwood,
195 N.J. Super. 406, 412 (App. Div. 1984). Subsections
2 and 3, which refer to owners of three or less condominium units
and owners of buildings with three or less residential units,
respectively, are both silent as to the statutory notice
requirement of section 61.9. We contrast this with the retention
of the notice requirement in subsection 1.
Ownership of three or less condominium or residential units
is substantially different from ownership of a larger and more
expansive development. While providing appropriate protection to
tenants under the Act, the Legislature recognized that a three-
year notice provision imposed on a more modest landlord would
pose an undue burden, and in essence, restrict sale of no less
than one-third of the landlord's holdings in the condominium.
While the regulatory scheme adopted by the DCA still exposes the
miscreant landlord to financial sanctions, the Legislature has
balanced the competing interests involved and endorsed a
regulatory scheme that serves the interests of all involved while
providing to the tenant financial protection afforded by treble
damages and attorney's fees. This exemption from statutory
requirements, either expressed or implied, has been previously
utilized by the Legislature in distinguishing between landlord's
with extensive holdings as opposed to landlord's with limited
leasehold interests. See, e.g., N.J.S.A. 46:8-44 (The Truth in
Renting Law) (providing an exception under its definition of
landlord that exempts "dwelling units in rental premises
containing not more than two such units, or in owner-occupied
premises of not more than three dwelling units"); N.J.S.A.
46:8-27 (Landlord Registration Act) (stating an exception in its
definition of landlord "provided that this definition shall not
include owner-occupied two unit premises"). We perceive that the
ultimate distinction between subsection 1 and subsection 2
landlords is entirely consistent with this legislative practice
and provides a sound basis for the seemingly disparate treatment
of landlords and tenants in requiring section 61.9 notice in one
instance and not the other.
In divining legislative intent, we recognize that statutes
must be read to:
"'effectuate the legislative intent in light
of the language used and the objectives
sought to be achieved.'" In re the Adoption
of N.J.A.C. 7:1I,
149 N.J. 119, 127-28,
693 A.2d 97 (1997) (quoting Merin v. Maglaki,
126 N.J. 430, 435,
599 A.2d 1256 (1992))
(internal quotations omitted). Moreover,
"'the inquiry in the ultimate analysis is to
determine the true intention of the law; and
to this end, the particular words are to be
made responsive to the essential purpose of
the law.'" Jimenez v. Baglieri, 152 N.J.
337, 351,
704 A.2d 1285 (1998) (quoting
Wollen v. Borough of Fort Lee,
27 N.J. 408,
418,
142 A.2d 881 (1958)). Ultimately,
statutes "are to be read with a modicum of
common sense to insure that the purpose of
the Legislature is upheld and preserved."
Friends of Dinky Woods v. Township of West
Windsor,
291 N.J. Super. 325, 333,
677 A.2d 289 (Law Div. 1996).
[Gallo v. Mayor and Township Council of
Lawrence,
328 N.J. Super. 117, 124 (2000).]
We first look to the language of the statute. Conspicuously
missing from subsection 2 and included in subsection 1 is the
jurisdictional requirement to adhere to the notice provisions of
section 61.9.See footnote 22 Defendant concedes its absence but suggests that
the "gap" in the notice requirement is filled by the regulation.
We do not read the regulation as filling any gap or
extending the notice requirement to subsection 2. Subsection 1
imposes an obligation on the "owner of a building" to provide the
requisite notice; the regulation refers to "any tenants" and is
the converse of the subsection 1 requirement. We do not read the
addition of the word "any" to enlarge the scope of what has been
held to be a jurisdictional requirement of a dispossess action.
See Vander Sterre, supra, 284 N.J. Super. at 443-44; Bayside,
supra, 254 N.J. Super. at 326.
While we recognize the dominating principle in construing
the Act that it must be construed liberally with all doubts
construed in favor of a tenant, see 447 Assocs. v. Miranda,
115 N.J. 522, 529 (1989); see also Amato v. Pelligrini,
246 N.J.Super. 34, 41 (Law Div. 1990), overruled on other grounds by
809-811 Washington St., supra,
253 N.J. Super. 34 (finding that
any doubt in intent or interpretation of AEA is to be resolved in
favor of tenant), we must consider this mandate in conjunction
with the prescript that administrative regulations which are
inconsistent with legislative power are invalid. New Jersey
Builders Assoc. v. Fenske,
249 N.J. Super. 60, 68 (App. Div.
1991). In the context of interpreting a statute, legislative
intent cannot be trumped by countervailing administrative
practices. New Jersey Tpk. Auth. v. American Fed. of State,
County, and Mun. Employees,
150 N.J. 331, 351 (1997).
We recently addressed this issue in a different context.
In DiVigenze v. Chrysler Corp., ___ N.J. Super. ___, ___ (App.
Div. 2001) (slip op. at 2-3), the issue was whether a consumer
could seek a remedy in Superior Court under New Jersey's
Automobile Lemon Law, N.J.S.A. 56:12-29 to -49 (the Lemon Law),
despite noncompliance with an administrative regulation, which
created a prerequisite to pursuing not only an administrative
claim, as required by statute, but also to maintaining a Superior
Court action. The Lemon Law expressly provides that consumers
must send the manufacturer a "last chance" letter, which
establishes that the claimed defect "continues to exist," prior
to pursuing their statutory remedies in an administrative
proceeding. See N.J.S.A. 56:12-33, -37. However, N.J.A.C.
13:45A-26.5 required consumers to send a "last chance" letter in
order "[t]o initiate a claim under the Lemon Law," including any
claim filed in the Superior Court. We found that this regulation
was inconsistent with the statute insofar as it imposed a
regulatory prerequisite to filing a Lemon Law claim in the
Superior Court. DiVigenze, supra, slip op. at 3, 15-18. We
concluded that there was "no evidence that the Legislature
intended to delegate to the Division authority to change the law
itself, and we conclude that those portions of the regulation
that would bar a Superior Court action are inconsistent with the
statute." Id. at 18.
We apply the reasoning of DiVigenze here. The legislative
reference to the section 61.9 notice in a proceeding under
subsection (l)(1) and its absence in subsection (1)(2) is a
meaningful omission. The impact on the three-unit condominium
owner is substantially different than "the owner of a building"
containing more than three units. While we acknowledge that the
agency may regulate a damage scheme to compensate tenants, it may
not create a jurisdictional bar to a landlord not envisioned by
the Legislature or provided for in the Act.
In sum, we conclude that the Legislative direction regarding
notice and the jurisdictional impact of such notice applies, by
its terms, to subsection 1 and, by its absence, not to subsection
2. We further conclude that dismissal of the complaint for
failure to provide such notice in the context of a subsection 2
dispossess action was error.
Reversed and remanded.
Footnote: 1 1 The statement referred to is the one contained in N.J.S.A.
2A:18-61.9.
Footnote: 2 2 The legislative history provides some limited insight into
the intent of Legislature. The Senate Committee Statement to the
original Assembly bill explained paragraph (l) as follows:
In the case of the sale of condominium or
cooperative units in buildings with three or
more units, when vacancy of a unit is made a
part of the sales contract, for purposes of
buyer occupancy of said unit pursuant to
paragraph (l) . . . , no removal of a tenant
shall take place unless:
(1) Two months' notice is given prior to the
institution of an action for removal . . .;
and
(2) The owner provides the person
establishing tenancy after the recording of
the master deed or agreement with an
informational statement of (a) 60-day notice
provisions and (b) landlord liability if he
arbitrarily fails to complete the sale; such
statement shall be reproduced as the first
clause in any written lease . . . . [N.J.S.A.
2A:18-61.9.]
In the case of (a) an owner of three or less
condominium or cooperative units who
personally seeks to occupy one of the units
or sells one such unit to a buyer for
purposes of personal occupancy, when vacancy
of the unit at the time of closing is a part
of the terms of the sales contract, . . . no
removal of tenant shall take place unless
(i) the 2 months' notice requirements . . .
are met, but
(ii) need not provide the informational
statement required in . . . [N.J.S.A. 2A:18-
61.9.]
Although section 2 was not enacted in the form described in the
Statement, the omission of the section 61.9 language in
subsection 2 is consistent with the Statement.