Development

In developer's action against a village for breach of contract and breach of the covenant of fair dealing, the village appealed from Supreme Court's judgment, after a jury trial, awarding developer $2,375,000 in damages. The developer cross-appealed on the issue of damages. The Appellate Division reversed and dismissed the complaint, holding first that the village had not breached the contract and second, that the village lacked power to include the contract provisions the developer alleged were breached.

A prior litigation between the Town of Chester and the Village of Chester over the village's attempt to annex a portion of developer's parcel and rezone it to permit the developer to build on the parcel, the developer was granted party status. That litigation was settled by stipulations under the terms of which developer agreed to reduce the scope of its proposed development, the town was to approve the annexation, and construction would be undertaken "in the matter described and set forth in the [FEIS] and the Village's SEQRA findings." The stipulations made the project subject to the review and approval of the village planning board. The village planning board then opposed the rezoning of the parcel, and the village board voted against three proposed zoning amendments. Developer then brought this action, alleging breach of contract and breach of the implied covenant of good faith and fair dealing. Supreme Court denied the village's motion to dismiss, and a jury returned a verdict in favor of developer. Based on the jury's verdict, Supreme Court awarded developer $2,375,000 in damages.