On February 24, 2014 Judge Silverman Katz in Superior Court of New Jersey gave preliminary approval to a class action settlement in the case encaptioned Jim Dreiling et al, v. D.R. Horton Inc. – New Jersey et al , Docket No. CAM-L-5349-12. The case was filed in 2012 in the Superior Court of New Jersey, Camden County on behalf of all persons who are current owners of units in The Plaza Grande at Garden State Park Condominium in Cherry Hill, New Jersey, who originally purchased their condominium unit directly from D.R. Horton, Inc. – New Jersey. The homeowners alleged claims for violations of the New Jersey Consumer Fraud Act and general equity principles under New Jersey law for Defendants’ alleged failure to timely complete construction of the Clubhouse and recreational facilities located in the Plaza Grande. Defendant D.R. Horton Inc. – New Jersey has denied any liability in this matter. The court has not ruled on the merits of the Plaintiff’s or the Class’ claims and has made no determination of violations or liability against Defendants. The parties nevertheless have agreed to settle the lawsuit.
WHAT ARE THE TERMS OF THE SETTLEMENT? D.R. Horton has entered into a Contract of Sale with Tony Gerard Associates, LLC (“TGA” or “Successor Sponsor”), a New Jersey Limited Liability Company having an address at 5100 Robbins Avenue, Philadelphia, PA 19135, for the sale D.R. Horton’s interests in and to the Property as defined in said Contract of Sale, as amended, but generally meaning the land and units comprising Phases I and II of The Plaza Grande at Garden State Park Condominium and the real property located adjacent to the Condominium (the “Land”), excepting those 101 condominium units previously conveyed by D.R. Horton to third party buyers (the “GSP Transaction”).To settle this lawsuit, TGA, as Successor Sponsor, has agreed at its sole and exclusive cost and expense to complete a portion of the existing Clubhouse structure (“Partial Clubhouse”) within one year of Final Approval by the Court of the proposed settlement which shall include various amenities including a workout room with exercise equipment, a movie and television room with a 50 inch flat screen TV, a party room with card tables, a billiards table, and a library reading room. TGA also agreed that it will complete and have operational the remainder of the entire Clubhouse when a total of 400 dwelling units are built and occupied by third parties in Phases I and II and on the Land. Also, for a period of four (4) years after completion of the Partial Clubhouse, TGA also has agreed to pay to the Garden State Plaza Grande Homeowner’s Association a portion of the maintenance expenses for the Partial Clubhouse (or Complete Clubhouse if fully constructed within four years), consisting of no more than 50%, of the annual maintenance and operation costs of the Clubhouse, up to a maximum of twenty-five thousand ($25,000.00) per year. TGA has also agreed to pay up to $150,000 to class counsel in attorney’s fees and litigation expenses and up to $1,000 to each Lead Class Representative as an incentive award, subject to court approval. Any attorney’s fees, litigation costs and incentive awards awarded will be paid separately by TGA and such fees and expenses will not come from class members. The proposed settlement is intended to settle all claims against Defendants that arise in any way from the Defendants’ conduct in the timely completion of the Clubhouse and related recreational facilities. By participating in this Settlement, each class member is releasing all such claims involving Defendants’ failure to timely complete construction the Clubhouse and related recreational facilities. This proposed settlement is entirely contingent on the GSP Transaction closing prior to Final Approval by the Court of this Settlement. If for some reason the GSP Transaction does not close prior to Final Approval of the Settlement by the Court, this proposed settlement shall be withdrawn and the parties will continue to litigate this action.
For a Copy of the Class Notice click here CLASS NOTICE
For a copy of the Settlement Agreement click here Fully Executed Settlement Agreement
For a copy of the Preliminary Approval order click here Preliminary Approval Order-Signed