In April 1997, Keven Shanahan bought two units at the Woodview Condominium complex in Millville, New Jersey. The Woodview Condominium Association, Inc., collected fees on a monthly basis to cover each unit owner's pro rata share of expenses for the common areas, including utility charges.
During his ownership, Mr. Shanahan defaulted on his obligation to pay the monthly condominium assessments, which he cured when sued by the Association. On January 11, 2000, Shanahan conveyed title to the two units to Tomas Pratts, Jr., who, in exchange, executed a one-year purchase money mortgage in the amount of $33,000 payable to Shanahan. Pratt also failed to pay the monthly fees, and on January 29, 2001, the Association filed an assessment lien on the units, totaling $3,192.50. In September 2001, Pratts defaulted on his mortgage with Shanahan, and Shanahan assumed control of both units as a mortgagee in possession. Shanahan rented out each unit. Although Shanahan satisfied the Association's assessment liens, he never paid the monthly condominium fees while in possession and control of the units.
As a result, the Association filed suit against Pratt and Shanahan to collect the monthly assessments that were due. Shanahan moved to dismiss on the grounds that he was not personally liable for the accrued fees because he did not hold legal title to the units.
Discuss whether Shanahan is liable for the fees.
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