New Jersey court reverses condo injunction over a $40M facade project
New Jersey court reverses condo injunction over a $40M facade project
2026-09-15 · New Jersey · Courts
A New Jersey condominium association that won a permanent injunction against an obstructive unit owner has had it taken away — not on the merits, but on procedure.
Rialto-Capital Condominium Association, Inc. v. Peter Coates, Docket A-0965-24, was argued October 7, 2025 and decided December 2, 2025 before Judges Sumners and Chase. It is unpublished and not precedential under R. 1:36-3.1
The project
The association is undertaking a three-year, $30 to $40 million facade project on its Jersey City building, to make repairs and modifications "necessary to ensure the building's long-term safety pursuant to Jersey City, N.J. Ordinance 21-054 (Aug. 19, 2021)."
The work "primarily includes repairing cracks, reinforcing structural angles and corners damaged by water intrusion over time, waterproofing window heads, repainting bricks and terra cotta, and repairing coping stone, cove joints and other building elements."
The terrace
The contractor needed access to the terrace adjoining Coates's unit as "a necessary point of transit for workers and equipment," and needed to cover the terrace to prevent damage and restrict access — including his own — to prevent injury.
The association's master deed makes building terraces "Limited Common Elements" it controls, collectively owned by association members, and gives the association "the irrevocable right to… access each [u]nit during reasonable hours to inspect, maintain, repair or replace any Common Element."
After confrontations between Coates and the contractor's workers, the association filed a verified complaint and order to show cause in Chancery seeking preliminary and permanent injunctive relief.
What went wrong
The court entered an order requiring Coates to show why he should not be "preliminarily and permanently" enjoined. It never told the parties it was conducting a plenary hearing. It heard argument on the return date, reserved decision, and three weeks later granted a permanent injunction.
The Appellate Division's holding is blunt: "The court should not have granted a permanent injunction on the order to show cause's return date." It reversed and remanded for a plenary hearing.
The standard the association will have to meet on remand
Permanent injunctive relief in New Jersey requires a showing that the movant's "legal right to such relief has been established and that the injunction is necessary to prevent a continuing, irreparable injury," and that final relief is appropriate on a demonstration of "liability of the other party, the need for injunctive relief, and the appropriateness of such relief on a balancing of equities."
The panel identified the seven non-exclusive factors drawn from the Restatement (Second) of Torts § 936: the character of the interest to be protected; the relative adequacy of the injunction compared with other remedies; unreasonable delay in bringing suit; any related misconduct by the plaintiff; comparison of hardship to the plaintiff if relief is denied against hardship to the defendant if granted; the interests of others including the public; and the practicality of framing the order.
The trial court had instead applied the Crowe preliminary-injunction factors, and made findings the panel called inadequate: that the association "possessed the authority to conduct this project" and that it "fought long and hard" to secure funding. Those findings "did not adequately address material disputed issues" — whether Coates actually interfered, the contractor's refusal to work without restraints on him, and the project's impact on his use of the terrace.
Why this matters to every New Jersey association doing facade or structural work
This decision arrives in the middle of the largest wave of mandated building-envelope work in New Jersey's history. The 2023 structural-integrity statute is generating inspections; municipal facade ordinances like Jersey City's are generating projects; and those projects need access to terraces, balconies and limited common elements that individual owners regard as theirs.
The category-level lesson is about the kind of order to seek. An association facing an urgent access problem can still move for preliminary relief on an order to show cause, on the familiar Crowe standard. What it cannot do is convert that hearing into final relief without telling anyone, however strong its access rights and however expensive the delay.
The association's substantive position was not rejected. Its master deed language is about as good as association access language gets. The panel simply held that a right in the master deed does not substitute for findings of fact.
The practical read
Three things follow for a board planning a multi-year envelope project. A documented, noticed process for exercising access rights before litigation answers what a court will ask: what the association did to resolve it. Where litigation is needed, the outcome turns on which form of relief is sought and on what record. And where permanent relief is genuinely required — because a three-year project cannot be re-litigated each month — the price is a full evidentiary hearing, with the budget to match.
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