Important Update on OBSC1 Litigation

OBSC1 Members: 

We would like to take this time to update you concerning ongoing litigation against Ocean Beach Surf Club Unit 1 (“OBSC1” or “Club”). Our last update on this matter was shared via email to all homeowners on November 7, 2023 (attached here for your convenience). As referenced in prior Membership meetings, OBSC1 was sued by a homeowner(s) (“plaintiff(s)”) more than a year ago. Given the magnitude of the situation, we are continuing to reach out to you with additional information to ensure you are as informed as possible, under the advice of our legal counsel. 

The litigation primarily involves a dispute between the plaintiffs and OBSC1 concerning whether the height of the intended structure that the plaintiffs wish to build conforms to OBSC1’s construction rules. The plaintiffs further contend that OBSC1 lacks authority to regulate any height restrictions despite deed provisions, our bylaws and our rules and regulations. Given the extreme impact of the claims made against us, OBSC1 has been forced into a situation of protracted (and costly) litigation to defend itself or risk losing the Club’s ability to govern (according to our Deeds, By-Laws, Rules & Regulations and Construction rules), potentially face receivership or bankruptcy, or both. Without an ability to govern, the Club would be left in unchartered territory putting at risk access to our beaches and marina, impacting our home values and losing what OBSC1 has been for over 75 years. It is certain that it would be a long and complicated process to sort out what the future of our community may be. 

Since our communication on November 7, 2023, we have filed various motions with the courts asking for a ruling to either overturn or stay the earlier Orders for legal reasons. While we were disappointed that the Orders were ultimately not stayed, we filed a request for an "interlocutory review" of Judge Troncone’s decisions. These types of requests for an expedited Appeal are rarely granted but on March 26, 2024, we were pleased to learn that the appellate division granted our motion for an interlocutory review! That was a big hurdle for our community and we are very pleased with the outcome. Now that the appellate division has agreed to hear our case, we are moving forward with submitting new briefs. Our initial brief is due mid-May, plaintiffs' brief is due mid-June, and our response is due early July. While it is on an accelerated briefing schedule, we don't know when the appellate court will render a decision, but expect it will take a few months. From a process standpoint, we are very positive about this development.

It is important for all of us to recall that when we became members of OBSC1 we acknowledged and agreed to abide by the club rules which are recorded and made available to each new member. The rules clearly and specifically include height restrictions, setbacks, restrictions on when construction can occur, beach rules and other important guidelines that make OBSC1 so special. We all enjoy the benefits of these rules whether it’s the views from our homes, the peace and quiet of having no construction during the summer months, the lifeguards that keep us safe or the community activities that we all enjoy. These rules form the very essence of our community and make us a jewel of the Jersey Shore.

As announced in our Spring Newsletter, the Spring Membership Meeting is scheduled for May 23rd at 7pm. While we may not have specific additional information to share about this matter by then, the Trustees will answer your questions to the extent we are able. We will be in touch with more information on the Spring Meeting shortly. 

We will continue to update our members as this matter makes its way through the Court system. In the interim, all owners are to abide by the current Deed, By-Laws, Rules & Regulations and/or Construction rules.  

Regards,

THE TRUSTEES