New Jersey Senate Bill S177

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Makes permanent certain immunity relating to COVID-19 spread in planned real estate developments.

Impact

The enactment of S177 is expected to significantly alter the legal landscape for real estate developments in New Jersey by providing long-lasting protection against liability claims arising from COVID-19. Proponents argue that this permanent immunity will encourage real estate investment and development by mitigating potential financial risks associated with the pandemic, thus fostering economic recovery and stability in the sector. By ensuring these developments are shielded from lawsuits related to COVID-19, the bill aims to bolster confidence among property owners and investors.

Summary

Senate Bill 177 aims to make permanent the immunity previously granted to planned real estate developments concerning liability for damages arising from COVID-19-related exposure or transmission on their premises. This bill amends existing legislation that established temporary immunity, which was set to expire on January 1, 2022. The key stipulation is that these developments must display a clearly visible warning sign at the entrances of communal spaces, such as pools and gyms, informing entrants that they waive all civil liability against the development for damages tied to COVID-19, except for instances of serious misconduct, such as fraud or gross negligence.

Contention

However, there are concerns regarding the implications of such immunity. Critics argue that providing blanket immunity could inadvertently incentivize negligence or non-compliance with health regulations, given the lack of accountability that could arise. This leads to a tension between protecting real estate developments from excessive liability and ensuring that they maintain safety standards to prevent COVID-19 transmission. The debate reflects broader concerns about balancing public health obligations and economic interests during ongoing challenges related to the pandemic.