Highland Lakes Country Club & Community Association, Plaintiff-Appellant v. Robert Franzino, Defendant-Respondent

Summary

The Supreme Court of New Jersey held that the association’s bylaws give a purchaser clear notice that he is liable for unpaid dues, assessments and initiation fees owed by prior owners, creating a contractual obligation and an equitable servitude enforceable against the purchaser. The Court also held that a foreclosure extinguishes the association’s lien but not the underlying debt, which remains enforceable. The Court reversed the Appellate Division’s decision and reinstated the trial court’s judgment in favor of the association. Justice Wallace dissented, arguing the bylaws are ambiguous and do not give clear notice of liability for predecessor arrears.