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May 15, 2009

Eminent domain case is dismissed unanimously; appeal in this and EIS case remain as last legal hurdles

Atlantic Yards Report

Norman Oder analyzes today's Atlantic Yards court decision.

The Atlantic Yards eminent domain case was always a long shot in state court (even more so than in federal court), and today a state appellate court dismissed Goldstein et al. v. Empire State Development Corporation (ESDC) in an unanimous opinion.

In New York State, an appellate court, rather than a trial court, hears eminent domain cases, and no testimony or cross-examination is allowed.

The straightforward language of the 16-page decision, which gave no quarter to the petitioners' claims, contrasted with the appellate decision in the case challenging the Atlantic Yards environmental impact statement (EIS), which took pains to express some skepticism about the project and featured a concurrence that sounded like a dissent.

Appeal issue

Eminent domain law in New York State gives unusual deference to the government condemnor. A major issue raised in legal briefs and the February oral argument is whether the defendant ESDC conducted a study to measure the relative benefit to developer Forest City Ratner.

In legal papers, the ESDC claimed it had done so, though it cited a document that didn't perform such a measure. In court, the ESDC lawyer said it wasn't necessary, and the court agreed.

Plaintiffs’ attorney Matthew Brinckerhoff said today, “The court’s logic is faulty. The private benefit to Ratner was never compared with the alleged public benefit because no one knew or cared to ask Ratner whether he would make billions, tens of billions or hundreds of billions. The ESDC has conceded that it had no idea how much money will be made by Ratner when it agreed to seize my clients’ homes and businesses on his behalf."
...

The nine petitioners, organized and funded by Develop Don't Destroy Brooklyn, will appeal to the state's highest court, the Court of Appeals, and say that they have the right to appeal without asking permission.

Update: Brinckerhoff said that the state Constitution and the Civil Practice Law and Rules allow the right to appeal when a case raises a constitutional question. That's been interpreted to mean a "substantial contitutional question." He said "we have multiple substantial constitutional questions, which gives us the right to appeal." However, he acknowledged, if the Court of Appeals disagrees, it could reject the appeal and require the petitioners to ask the Appellate Division to file a motion for leave, which would be discretionary. "I have a high degree of optimism [that the Court of Appeals would hear it], but I can't guarantee it," he said.

Such an initial request for leave to appeal is still pending in the case challenging the EIS. It could take several months--likely until the fall, given the courts' summer recess--for final appeals to be denied, and it would take much longer should the appeals be accepted. If the latter, there could be two more years of delay.

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Posted by eric at May 15, 2009 2:52 PM