441 River Ave., Inc. v. State of New York

Claim No.:	135926
Claimant:	441 River Avenue, Inc.
Defendant:	State of New York

Facts: Claimant 441 River Ave., Inc. (“River Ave”) is the owner of property located in the Bronx. On or about 2013, defendant, State of New York (“State”), acquired a permanent easement of 1492 sq. ft. in Lot 103 of this property. River Ave was offered $110,000 as compensation for the easement. The existence of the easement did not affect the building on the property. River Ave retained an appraiser who concluded that severance damages were not appropriate. The parties settled the dispute over the value of the taking for $260,000. In 2018, New York City acquired this lot, as well as Lots 100 and 107. Again, River Ave retained an appraiser who valued the property at $8,370,000 and further determined that the permanent easement reduced the value of the Lot 103 by 90% to $508,000. River Ave further discovered that New York City had concluded that there was a diminution in the value of Lot 107 caused by the original taking. River Ave filed an action for fraud, equitable fraud and recission. State then filed a motion to dismiss this action as untimely.

Holding: The Court of Claims granted that portion of the defendant’s motion to dismiss the action as untimely, but granted River Ave the opportunity to file a late notice of claim.

Submitted by: Philip Sanchez, Esq. (psanchez@herrick.com)

Precis: Davida S. Scher