Georgia Malone & Co. v. Rieder

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Justia Opinion Summary

In this action, a real estate company that prepared due diligence reports for a developer in connection with the potential purchase of commercial properties alleged that a rival brokerage firm was unjustly enriched when it acquired the material from the developer and later obtained a commission on the ultimate sale of the properties. Supreme Court dismissed the unjust enrichment claim against the rival brokerage firm, and the appellate division affirmed. At issue before the Court of Appeals was whether a sufficient relationship existed between the two real estate firms to provide a basis for an unjust enrichment cause of action. Based on the allegations presented in the complaint, the Court of Appeals held that the relationship between the two parties was too attenuated and affirmed.

Island Park, LLC v State of New York 2013 NY Slip Op 04757 Decided on June 26, 2013 Court of Appeals Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and subject to revision before publication in the Official Reports.

Decided on June 26, 2013
No. 132

[*1]Island Park, LLC, Appellant,

v

State of New York, Respondent.




J. Michael Naughton, for appellant.
Andrew D. Bing, for respondent.
New York Farm Bureau, amicus curiae.


MEMORANDUM:

The order of the Appellate Division should be affirmed, with costs.

Claimant brought this action in the Court of Claims to recover compensation for an alleged regulatory taking of its property. The basis for the claim is that the State Department of Transportation required the closure of a railroad crossing that claimant had used to move [*2]equipment from one part of its land to another. The record shows that the Department ordered the closure after it determined that the crossing presented a safety hazard. It found that fast moving trains passed by frequently; that a curve in the tracks limited the distance at which a train could be seen from the crossing; that heavy, slow-moving farm equipment was being transported over the tracks; and that there was a substantial grade at the approaches to the crossing, which made it necessary for crossing vehicles to reduce their speed. In an article 78 proceeding brought by claimant, the Department's determination was upheld as being supported by substantial evidence (Matter of Island Park, LLC v New York State Dept. of Transp., 61 AD3d 1023 [3d Dept 2009]).

On this record, the conclusion is inescapable that the closure of the crossing was a proper exercise of the State's police power. Moreover, claimant has failed to show the extent to which the Department's action diminished the value of its land, and has not argued that its easement to cross the railroad tracks should be treated for these purposes as an item of property separate from the land itself. Claimant's claim of a regulatory taking is without merit.
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Order affirmed, with costs, in a memorandum. Chief Judge Lippman and Judges Graffeo, Read, Smith, Pigott, Rivera and Abdus-Salaam concur.
Decided June 26, 2013

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