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Eminent Domain Law

By NYRE Staff
November 01, 2021

State May Recover Part of Advance Payment from Condemnee

Elpa Builders, Inc. v. State NYLJ 7/16/21, p. 24, col. 3 AppDiv, Second Dept. (memorandum opinion)

In an action to recover damages for a partial taking of property, landowner appealed from a Court of Claims judgment awarding the state $18,540, the difference between the state's advance payment and the damages assessed after trial. The Appellate Division affirmed, holding that the Court of Claims judgment was supported by evidence, and that the statute permitting the state to recover the balance was constitutional.

Landowner owned a 53,465 square foot parcel with frontage on two major arteries. The state appropriated two roadside strips, totaling 3,112 square feet to construct a public greenway. The state offered, and landowner accepted an advance payment of $302,460 pursuant to an agreement providing that if the claimant elected to challenge the compensation in the Court of Claims, the state would be entitled to the difference between the advance payment and the compensation determined by the court. Section 304(H) of the Eminent Domain Procedure Law authorizes such agreements. After accepting the advance payment, landowner sought $2 million in compensation from the Court of Claims, and the court found that landowner was entitled to $283,920. The court then awarded the difference to the state, prompting this appeal.

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