SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-0868-00T3
LAKE LOOKOVER PROPERTY
OWNER'S ASSOCIATION,
Plaintiff-Respondent,
v.
BOB T. OLSEN, DONALD D. DAVIS,
JANET L. DAVIS, FRANK A.
CANGELOSI, PATRICIA CANGELOSI,
THIERRY MURAD, JEAN-PHILIPPE
MURAD, CATHERINE MURAD, STEPHEN
R. BROWNLEE, CARMELLA M. BROWNLEE,
RAFAEL COLON, IUSEPPINA ROSETTA,
JOHN BUONANNO, VINCENT J.
ROSELLI, III, NINA M. ROSELLI,
CARL LEUZE, MARIA LEUZE, KEN
GRABER, RICHARD VAILLANT, JOAN
VAILLANT, GEORGE J. STEPHENS, JR.,
CARMEN E. EMERY, MARK & BRENDA
ARNOWITZ, PHILIP THOMAS CASTRONOVA,
KENNETH L. ZIEGELBAUER, JAY J.
CAHILL, LYNNE CAHILL and SCOTT K.
CAHILL,
Defendants-Appellants.
_____________________________________________________
Argued October 16, 2001 - Decided February 14, 2002
Before Judges Wefing, Lesemann and Parrillo.
On appeal from Superior Court of New Jersey,
Chancery Division, Equity Part, Passaic
County, PAS-C-65-94.
Kenneth F. D'Amato argued the cause for
appellant (Donald A. Rosenfelt, attorney;
Mr. D'Amato, of counsel and on the brief).
Lawrence G. Tosi argued the cause for
respondents (Warren, Tosi & Semeraro,
attorneys; Mr. Tosi, of counsel and on
the brief).
The opinion of the court was delivered by
LESEMANN, J.A.D.
Defendants, the owners of property surrounding an artificially
constructed lake known as Lake Lookover, appeal from an order of
the Passaic County Chancery Division which determined that
defendants and other similarly situated property owners are
responsible for the cost of repairing and reconstructing a dam on
the lake. Defendants own approximately thirty-four of the 100 lots
which were created at the time the developers of the land also
created Lake Lookover by constructing the dam in question. The
chain of deeds from the original developer to the present owners _
approximately 100 in all _ includes the grant of easement rights to
use the lake.See footnote 11 The trial court held that the holders of the
easements bore responsibility for required maintenance and
reconstruction of the dam, and for that purpose were required to
comply with an assessment fixed by the plaintiff, Lake Lookover
Property Owners Association (the Association), the present owner of
the land encompassing the lake and its beaches, as well as the dam
and some other common facilities.
Defendants challenge the authority of the Association to levy
such assessments and also maintain that they may abandon their
easement rights and thus be exonerated from any obligation to
contribute to the repair or maintenance of the dam. We are
satisfied, however, that under all of the facts in this matter,
including the judicial proceedings which predate the present
complaint, the Association was and is empowered to levy such
assessments; that the trial court was correct in concluding that
the holders of the easements are responsible for those costs; and
that they cannot avoid that obligation by a purported abandonment
of their easement rights. Accordingly, we affirm the decision of
the Chancery Division, substantially for the reasons set out by
Judge Susan L. Reisner in her written opinion dated June 22, 2000,
together with the additional reasons set out below.
Lake Lookover came into existence in the 1920s when two
developers, Alfred Hansen and Elias Lee, created the lake by
damming a water course known as Longhouse Brook. Either before or
soon after that construction, the property was apparently owned by
a corporation, and thereafter it became held by a partnership known
as Lake Lookover Development Company (the Development Company).
The development started by Hansen and Lee included a division of
property surrounding the lake into something over 100 home sites,
and conveyances of those individual plots included the easement
rights summarized above.See footnote 22
Beginning in or around 1980, the New Jersey Department of
Environmental Protection (DEP) issued repeated directives to the
Development Company and the Association, aimed at effecting repair
and reconstruction of the dam, which the DEP said was unsafe. When
there was no compliance with those directives, the DEP instituted
suit in April 1994, against both the Development Company and the
Association. In its complaint, the DEP referred to its earlier
communications to both parties, contending that while the
Development Company "as owner, had primary responsibility for the
dam, . . . that the Association through its unauthorized
modifications to and exercise of control over the dam, was also a
responsible party." In the complaint, the DEP described the
Association as "an organization comprised of property owners who
live adjacent to and possess lake rights to Lake Lookover." It
also traced a pattern of what it claimed was the Association's
exertion of "control over the dam by making repairs to the dam
without a permit or approval from the DEP." The complaint also
referred to various representations by the Association, dating from
in or about 1990, that it intended to undertake necessary
engineering studies and repairs to the dam in order to address the
DEP's concerns.
Both the Development Company and the Association filed answers
to the complaint. In addition, the Development Company filed a
cross-claim against the Association, asserting that the Association
is composed of holders of a "dominant easement" over the
Development Company's property, that the Association "exercises
exclusive control over the lake waters and its beaches and also
controls access to the dam establishing the same and limits and
restricts exclusive use of Lake Lookover to its members," and that
the Association "even bars access to the beach area and lake" to
the partners of the Development Company. It concluded that, as the
holder of the dominant easement, the Association (and not the
Development Company) is responsible for the maintenance and safety
of the dam and all aspects of the lake, and it demanded that the
Association "indemnify, and hold harmless" the Development Company
from any claims of the DEP. In its brief in opposition to the
DEP's request for summary relief, the Development Company cited the
same principles and case authority as were relied on by the trial
court here, in reaching its conclusion that the holders of the
easements are primarily responsible for maintenance and repair of
the dam: Island Improvement Assoc. v. Ford,
155 N.J. Super. 571
(App. Div. 1978) and Ingling v. Public Serv. Elec. & Gas Co.,
10 N.J. Super. 1 (App. Div. 1950). In that same brief, the
Development Company identified its partners as Leo Solomon "a
retired attorney aged ninety-one years; his wife and two
daughters." It also stated that, "The primary purpose of the
partnership was to retain title to approximately four buildable
lots for the family's use, which lots remain after a succession of
conveyances by predecessors in title, as far back at 1926. The
partnership also holds title to the land on which a dam is located
and which forms the basis of this proceeding. The partnership is
not presently engaged in any development."
Thereafter, Judge Amos Saunders of the Passaic County Chancery
Division, entered an order dated June 27, 1994, dismissing the DEP
action as against the Association and requiring the Development
Company to submit plans and details for proposed repairs to the dam
within forty-five days. On October 25, 1994, after the court found
that the Development Company had not complied with its June 27,
1994 order, the court directed that the four partners of the
Development Company appear for an examination by the Attorney
General to determine "the personal assets of each and their ability
to comply with" the earlier order respecting plans and repairs for
the dam. It also set a return date to determine the partners'
ability to comply with those obligations. On March 16, 1995, still
another order was entered, this one determining that the
Development Company and its partners (who had not complied with the
directive to appear for examination) "have the ability to comply"
with the court's earlier orders, and directing that a bank account
of approximately $120,000 belonging to the Development Company be
posted "as security for the engineering plans and repairs to the
dam." That account was "frozen," with a directive that the funds
could not be transferred without prior approval of the court. The
order further provided that if the Development Company and the
Association could not reach an agreement by April 3, 1995,
concerning funding of the engineering plans and reports, the
proceeds of the bank account could be used for those purposes.
At least as early as March 2, 1995 _ and probably earlier than
that _ the parties undertook discussions among themselves and with
the court concerning possible resolution of the dispute. In a
letter to Judge Saunders dated March 2, 1995, counsel for the
Association referred to preliminary attempts to estimate the cost
of repairs to the dam. The letter noted that, "If the repair costs
were learned to be totally beyond the reasonable reach of the
homeowners, we would all need to reconsider the matter. But if the
repair costs were manageable for the homeowners, we could establish
a time frame and other mechanisms for undertaking the repairs."
The letter went on to note that the Association "would initially
undertake the role of a management organization on behalf of the
homeowners," and it added:
Your Honor indicated that the Association's
efforts to do so would be favored by the Court
to the extent that the Association could bring
consolidated summary proceedings or other
expedited procedure before the court for
collection of assessments under the Island
Improvement doctrine. The Association's board
is gratified to hear of this opportunity.
The letter then noted the proposal for the Development Company to
convey the "lake bed and related lands" to the Association, with
the Association empowered "to receive dues and assessments and
preclude, to the extent possible, use of the lake by those failing
to contribute to its maintenance and management." Counsel
concluded that, "It would appear that the board will be able to
obtain membership approval for such an agreement."
Throughout 1995 and 1996, and continuing into 1997, there were
ongoing discussions and correspondence among the parties and with
the court, all aimed at resolving the impasse concerning repairs to
the dam. In an effort to relieve pressure on the dam and alleviate
the DEP's concern as to the safety of the dam, the court, on July
16, 1997, and again on August 8, 1997, entered orders directing
that the water level of the lake be reduced by three feet and the
repairs and rebuilding of the dam commence as soon as possible.
The Association responded by asking the court to reconsider its
directive for lowering the water level, pointing out that such an
action had been taken on a prior occasion with near disastrous
results: a number of homes found their wells inoperable, and the
local fire department claimed the lower water level constituted a
fire hazard. Eventually, in November 1997, the court stayed its
directive.
Finally on February 5, 1998, the matter was settled by a
seventeen page "Agreement and Consent Order of Settlement" executed
by the DEP, the Development Company and the Association, and
approved by Judge Saunders. It provided for the Development
Company to convey the lake and beach property to the Association.
It noted that the Association had already collected approximately
$56,000 which it was holding in escrow, and it provided that the
$56,000 should be available for use in effecting repairs of the
dam. It also said that a $10,000 fine levied on the Development
Company would be available for that purpose, but it provided for
reimbursement to the Development Company of other funds it had
expended in connection with the anticipated repairs and plans. It
further provided that the repairs were to be undertaken in two
phases; phase one to commence on or about April 1, 1998, and be
completed by June 1, 1998; and phase two to begin one year later,
on April 1, 1999, and be completed by June 1, 1999.
The settlement agreement had a provision entitled "Sharing of
Costs and Fees" which said, in essence, that the costs of the
project would be "borne on a pro rata basis" by all the Lake
Lookover property owners who had "lake rights." It also said that,
"The Association shall have the right and responsibility to bill
each benefitted property owner on a monthly, quarterly or other
regular schedule for all such fees and costs, and the failure by
any such property owner to make timely payment in accordance
therewith shall constitute good cause for the Association to notify
the court of such failure, and such failure may constitute a
contempt of court or occasion any other remedy as the court may
deem fit in its discretion."
In addition, the agreement contained a "Section Seven"
entitled "Association's Ability" which, in pertinent part, read as
follows:
The parties recognize and agree that it
is materially contemplated herein that the
Association shall be supported by [the
Development Company] and the Court in
consideration of the obligations to be
undertaken by the Association benefitting all
property owners, with rights in and to Lake
Lookover. For purposes of construing this
provision, it is specifically understood and
agreed that the Association's financial
ability to perform as provided herein is
dependent upon a fair and reasonable sharing
of financial obligation among such property
owners, . . . at least as to the Lake Lookover
dam, and reimbursement of [the Development
Company], the conservation and preservation of
its waters and the quality thereof . . . .
The Association is responsible to collect
funds to fulfill its obligations and
responsibilities under this Consent Order and
the Safe Dam Act.
Section Eight, entitled "Notice to Affected Property Owners,"
directed the Association to notify all property owners in Lake
Lookover of the entry of the agreement and consent judgment and to
provide each with a copy thereof, including "a form of waiver by
which said property owners would waive appearance before this court
and by which such property owners would consent to payment of a pro
rata share of the above described expenses." The agreement further
provided that the notice "shall advise such property owners that
failure to consent shall make such property owners subject to an
Order to Show Cause or other expedited remedy hereby afforded the
Association to achieve the intent and purpose of this agreement."
Finally, the agreement provided for the withdrawal of pending
appeals to this court by the Development Company and the
Association respecting earlier orders by the Chancery Division and
also provided for recording the Agreement in the Office of the
County Clerk.
Attached to the agreement was an addition signed by Judge
Saunders, reading as follows:
The within agreement having come before
the Court, and it appearing that its terms
will best serve the public interest and the
respective interests of the parties, and it
further appearing that the subject of this
agreement and the costs and/fees connected
therewith affect and obligate third parties
who are presently not before the Court, and
other good cause appearing, it is
ORDERED as follows:
1. This agreement shall bind and obligate the
parties as described herein above.
2. The parties are granted leave to proceed
as against appropriate third parties to
achieve the sharing of costs as contemplated
herein and otherwise on the strength of this
order.
It is also important to note that, at least from the time of
the DEP complaint in 1994, the Association made constant attempts
to advise Lake Lookover property owners of the status of the matter
and its seriousness. The appendix presented on this appeal
contains several notices and other mailings directed to the
property owners, pointing to the threat posed to the continued
existence of the dam and the lake and thus to the community itself,
seeking participation by all property owners in addressing the
problem, and also soliciting financial contributions to provide the
needed repairs to the dam. There were at least four such
communications in 1994. In January 1995, there was a notice of a
meeting of "all property owners (not just Association members)" to
be held on January 26, 1995, to include an appearance by the
Association's attorney who was to "explain the legalities of our
recent court actions with" the Development Company and the DEP.
That notice concluded with a plea that "this is your opportunity to
gain knowledge and insight concerning our involvement as property
owners and to understand what this is all about." The appendix
also includes correspondence with the Association's attorney,
requesting that he be prepared to address specified questions at
the meeting referred to, including questions relating to the power
and status of the Association to act respecting the dam. A letter
in 1995, from the then president of the Association, also advised
that the Association meeting attended by the attorney was recorded
on tape and the tape could be made available to anyone who had been
unable to attend the meeting. Similar letters concerning the
status of the matter were dated May 8, 1995, August 13, 1995,
September 2, 1995, and there was an undated letter in the Spring of
1996. There were also several communications concerning Judge
Saunders's order (later stayed) directing a lowering of the lake's
water level.
One letter, apparently mailed in early September 1997, refers
to a meeting of the "Lake Lookover property owners" on September 4,
1997, at which the Association's attorney spoke to the property
owners. The letter then notes that,
As a result of that meeting the property
owners (not the association) unanimously voted
to implement an assessment program to fund the
difference between what the DEP has of [the
Development Company's] monies and what is
necessary to complete the repairs. The
immediate goal is to raise $38,000 by
September 15th to demonstrate to the DEP our
ability to raise the needed $116,000 by Feb.
1st so construction can start in April. A
payment schedule was voted on and is as
follows:
$500 due September 15th for each
property owned.
$500 due November 15th for each
property owned.
$500 due February 1st for each
property owned.
As there are no monies available to us thru
loans, this is our only recourse to attempt to
have the DEP not destroy the lake. We have
asked the DEP to delay this destructive
measure [lowering of the water level] until
the property owners have time to respond.
It was felt by all present that every
effort must be made to SAVE THE LAKE. The
very fabric of our community is deeply tied to
existence of the lake. The deeded rights we
all have legally obligates every property
owner to pay their fare [sic] share.
A tape was made of the meeting and is
available to anyone interested.
There are also numerous other letters, all in the same vein, and
all directed to the Lake Lookover property owners throughout the
period.
The settlement noted above was dated February 5, 1998, and was
approved by the court on March 11, 1998. Even before the court had
signed it, the Association had advised all property owners of the
substance of the agreement, and on June 22, 1998, its attorney sent
a more detailed explanatory letter plus a copy of the actual
settlement agreement to each property owner. The letter advised
the owners of their obligation to pay their pro rata share of the
assessment to be made to repair and rehabilitate the Lake Lookover
dam.
Meetings of the property owners and the Association members
were scheduled and held in August 1998. At a meeting on August 23,
1998, a bid for the phase one dam reconstruction was accepted by a
vote of thirty-one in favor and two opposed. At the same time, the
plan for phase two was also approved, by a vote of twenty-three to
four. The meeting was open to all Lake Lookover home owners but
only those who had contributed the requested assessment were
permitted to vote on acceptance of the bids. In a certification
submitted in the present matter, the President of the Association
said that throughout the entire period from 1994 into 2000, all
property owners were generally permitted and encouraged to vote on
questions concerning the lake or the dam reconstruction, and that
this vote on the acceptance of bids was the only issue on which
"people who did not make any payments toward the dam repair were
restricted from voting." She said that, the owners present at the
meeting "decided that those who refused to contribute to the dam
repair fund should not have a vote in acceptance of a contract bid
because the paying home owners would have to carry the cost until
the nonpaying home owners were compelled to pay."
The original estimated cost of phase one of the dam repair was
$116,000. However, by April 14, 2000, $231,000 had been spent on
phase one, and the estimated cost of phase two was additional
$200,000. Thus, if distributed equally among the Lake Lookover
homeowners, each homeowner would pay approximately $2,300 for the
phase one costs, and an additional $2,200 for phase two.
On April 14, 2000, the Association filed the present suit.
The complaint stated that the defendants had failed to pay the
"apportioned cost of repair and maintenance" in accordance "with
the consent order" issued and approved by the court in 1998. An
order to show cause was issued, the matter was argued before Judge
ReisnerSee footnote 33 on May 12, 2000, and June 21, 2000, and the court issued
its opinion on June 22, 2000. An order embodying the substance of
that opinion was entered on August 31, 2000, and this appeal
followed.
In its decision, the Chancery Division found that there were
no material facts in dispute. It further found that the
Association,
as the owner of [the lake], has the power to
make assessments against the property owners
who hold an easement for use of the lake, for
the upkeep of the lake including repair of the
dam.
The court concluded that given the emergent need to repair the dam,
in the face of a lawsuit by the Department of Environmental
Protection (DEP), the Association acted reasonably in taking bids
for repair and giving the contract to the lowest bidder. The court
also declared it would not revisit the issues resolved by the order
signed by Judge Saunders on February 5, 1998. It said the
defendants had full notice of that matter, they had not asked Judge
Saunders to reconsider the imposing of obligations on them, nor had
they appealed the 1998 order. The court found it inequitable for
the defendants now, some two years later, to challenge the actions
which the Association had taken in reliance on that order.
The court also held, on the basis of case law as well as the
terms of the 1998 order, that the Association _ as owner of the
lake and beach property _ had the authority to make assessments
against the property owners to cover the costs of needed repairs to
the dam. It found the governing principle of law to be that set
out in Island Improvement Assoc. v. Ford, supra,
155 N.J. Super. 571 (App. Div. 1978), as well as similar cases in this state and
elsewhere.
The court did find that the Association had erred in simply
imposing an identical assessment against all properties without
considering whether assessments for different properties should
vary depending on such factors as the size of an individual
property, its proximity to the lake, and whether it had been
developed. It directed the Association to meet again and make that
determination, by vote in which all property owners (not just
Association members) would have a right to participate. The court
also directed that all easement holders should have the right to
vote and use the lake facilities, whether they had or had not paid
all assessments made against them. Recalcitrant easement holders
might be subject to suit to recover monies due, but they could not
be deprived of their rights as easement holders. To facilitate
future orderly handling of issues, if and when they arose, the
court certified the action as a class action, naming all the
defendant property owners as members of a defendant class.
We agree with the reasoning and the conclusions of the trial
court. We see no need to restate and re-analyze those issues.
Instead, we shall comment only on the issues stressed by defendants
on appeal: the defendants' claimed right to surrender their
easement rights and thereby avoid liability for contributions to
the repair cost of the dam; and defendants' contentions that the
Association amounts to little more than an unauthorized interloper
in this matter, with no authority or rational basis to accept
conveyance of the lake property from the Development Company, to
contract for the repairs of the dam or to assess the homeowners for
the costs thereof.
First, it should be clear that an acceptance of the
defendants' argument that, if they surrender their easement rights
they need not contribute to the cost of repairing the dam, would
essentially subvert the rule set out in Island Development, that,
"With the benefit [of an easement] ought to come the burden, absent
agreement to the contrary. . . ." Island Development, supra, 155
N.J. Super. at 574. The argument that, notwithstanding that
principle, one can avoid its impact by surrendering the easement
right, has a deceptive simplicity. Some reflection, however, makes
clear that the concept is not sound.
The fact is that the present easement holders or their
predecessors in title have enjoyed the benefit of the Lake Lookover
easement since its creation in the 1920s. It was in that time
frame that the easement was granted and the dam created. The dam
has undoubtedly suffered wear and tear over the ensuing years and,
not surprisingly, after some eighty years it requires substantial
rehabilitation. A decision which would permit those who have
enjoyed use of that easement to now avoid such payment, simply by
an act of purported abandonment of the easement, would make little
sense. The condoning of such action would subvert the equitable
concept on which the rule of Island Development is based: that the
burden should follow the benefit. Under such a rule, the ones who
enjoyed the benefits would share none of the burdens.
We are not, of course, dealing with an "abandonment" which
took place at or about the time the easement itself was created.
That is, if an original grantee from the Development Company had
forthwith and formally renounced the easement immediately upon
receipt of a deed, one could conjure a rational argument which
might sustain such relief. Under those circumstances, the
Development Company, for example, might have demanded a return of
its deed if it felt that such action by the grantee threatened the
integrity of the entire lake community. Or, the Development
Company might have demanded some other acknowledgment of an
obligation to contribute to repairs; or, at least, it would have
been apprised of the grantee's position and been given an
opportunity to respond.
Here, there was no such notification by any grantee. So far
as appears, for some eighty years, the holders of the easements
enjoyed the rights and privileges attendant upon those easements.
No one ever purported to surrender the easement right. Even when
the DEP filed its 1994 suit demanding that the Development Company
and/or the Association attend to the needed rehabilitation of the
dam, there is no indication that any property owner purported to
surrender their easement rights. Only after the Association had
spent close to four years struggling with the Development Company
and the DEP and attempting to protect and preserve the lake, did
the defendants press their claim of a right to avoid repair
obligations by surrendering their easements.
Defendants argue that the Restatement (Third) of Property:
Servitudes § 4.13 supports their position. However, the trial
court rejected that argument and we agree.
Section 4.13 of the Restatement sets out the general rule
that, unless the terms of the easement provides otherwise, "The
beneficiary of an easement . . . has a duty to the holder of the
servient estate to repair and maintain the portions of the servient
estate and the improvements used in the enjoyment of the servitude
. . . ." That is the same general rule that applies in this state
under Island Improvement. Further, paragraph (4) of section 4.13
expressly states that, "The holders of separate easements . . . who
use the same improvements or portion of the servient estate in the
enjoyment of their servitudes have a duty to each other to
contribute to the reasonable costs of repair and maintenance of the
improvements or portion of the servient estate." That language
seems squarely applicable to this case, where the several property
owners hold "separate easements" in the same servient estate (Lake
Lookover) and thus have a duty to each other to contribute to the
cost of repairs and maintenance that are required to preserve that
lake.
Defendants, however, rely on comment b to section 4.13 which,
(as part of a much longer discussion) contains what amounts to
little more than a passing observation that the holder of an
easement "is free to abandon the servitude" and adds that, "any
duty that arises generally ceases on abandonment. . ." However, in
quoting that provision, defendants ignore the remaining portion of
the quoted paragraph, as well as other sections of the Restatement
which bear on the duty in question. Thus, after the statement
quoted by defendants, comment b to section 4.13 states that,
Once the easement owner has started making use
of the easement, there is a duty to make such
repairs or do such maintenance as may be
necessary to avoid unreasonable interference
with the servient estate. . . . If the
servient estate is being used by the servitude
owner in common either with holders of other
similar servitudes or with the owner of the
servient estate, the owner of the servitude
does not have an affirmative duty to make
repairs, but does have a duty to contribute to
the reasonable costs of repairs or maintenance
undertaken by others.
That provision, therefore, seems consistent with that quoted above:
holders of separate easements have a duty to each other to
contribute to maintain a common servient estate.
To permit those in a position such as defendants to avoid
their maintenance obligation by some purported abandonment or
surrender of the easement rights which they or their predecessors
have enjoyed for so many years, would quite obviously represent a
default in the obligations of those easement holders to their
fellow easement holders. It would render it difficult, if not
impossible, for anyone to enjoy the benefit of the easement, or to
enjoy the lake itself, which might well be destroyed if the DEP
followed through with its stated intent to remove the dam if the
required repairs are not made. We do not believe the Restatement
supports that position or, if it does, we decline to adopt it.
We also find no merit in defendants' claim that the
Association in some way adopted an improper role and assumed
duties, rights and obligations that it had no right to assume.
Although defendants paint the Association as nothing more than a
beach social club during most of its existence, the picture that
emerges from this litigation is quite different. Although title to
the lake and other common property remained in the Development
Company until 1998, the fact is that the Association generally
supervised use of the lake and attended to routine repairs and
other matters that required attention throughout the life of the
Lake Lookover community. Indeed, in their present brief,
defendants argue that the Association's exercise of control over
the lake, dating back at least to 1975, was frequently arbitrary,
and that the Association exercised powers to limit and govern
access to the lake and the beach for many years. We note too that,
in its presentation to the court, the Development Company
originally asserted that the Association, not the Development
Company, should be responsible for dam repairs and maintenance
because over many years, the Association had been the de facto
operator of the entire lake community. And, of course, the DEP
apparently also had such a view of the Association's activities and
status since it joined the Association as a defendant in its
complaint.
In its notices and letters to easement holders, and in its
certifications submitted initially before Judge Saunders and
thereafter in this litigation, the Association has consistently
maintained that the lake is the center of the Lake Lookover
community. The community was created by the original developers of
the lake and builders of the dam. The homes were built on the lots
laid out by the original developers of the lake and the surrounding
area are there because of the lake. In 1997, when Judge Saunders
initially ordered a lowering of the water level in order to reduce
pressure on the dam, it was the Association that led the effort to
induce Judge Saunders to stay that order _ which he finally did.
It was the Association that pointed out the dire consequences of
such action in the past, and the likelihood that there would be
similar adverse effects in the future. So far as appears, none of
the defendants disagreed with the Association's taking the lead
role in that earlier litigation or in the negotiations with the
Development Company and the DEP.
As described above, the Association made constant efforts to
apprise the easement holders of the status of the litigation before
Judge Saunders, and what they saw as a threat to the very existence
of Lake Lookover and the well-being of the community. There was no
impropriety in the Association assuming that role and taking those
actions. As Judge Reisner noted in her opinion, the Association
did not perform perfectly in conducting its meetings and holding
its votes, but its mistakes were subject to correction and, with
the guidance and supervision of the court, there is no reason to
believe they will be repeated in the future.
We agree with the trial court's conclusion that there is no
reason to overturn any of the good faith actions taken by the
Association. As the court noted, the defendants never asked Judge
Saunders to reconsider or vacate the order he entered in 1998, nor
did they appeal that order. They do not claim that the repairs
demanded by the DEP were unnecessary or excessive. Aside from
unsubstantiated statements in their brief, that the repairs could
have been effected in a less costly manner, they do not challenge
the bid prices for the work to be done or the acceptance of the
bids. Only long after the Association has wrestled through this
complex, difficult proceeding designed to save Lake Lookover and
the Lake Lookover community do defendants now object to the
Association having undertaken the efforts they were aware of over
the last several years. To set aside all of those actions, and
require all to start anew, could only produce anarchy as respects
any attempt to accomplish repairs to the Lake Lookover dam and
preserve the dam, the lake and the community itself.
The order under appeal is affirmed.
Footnote: 1 1 The easements appeared at various stages of the chains of title, sometimes in deeds from the original developer and sometimes via mesne conveyances. They were variously phrased and formulated. However, it is generally agreed that all the properties received, in one form or another, the benefits of an easement entitling the owners to use Lake Lookover. Footnote: 2 2 Approximately fourteen plots have never been sold and at the time these proceedings arose, were still held by the Development Company. Footnote: 3 3 Judge Saunders had since retired.