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Consequential Damages Related to a Parcel of Land Sold Prior to the Taking Should Not Have Been Granted by the Court of Claims

The Fourth Department, in a full-fledged opinion by Justice Fahey, determined the Court of Claims should not have awarded consequential damages for a parcel of land which was sold prior to the taking.  As the court described the issue:

Here we address the issue whether consequential damages may be awarded when the real property in question was sold months before the taking of other real property that affects the land in question. Claimants commenced this proceeding seeking damages for the diminished value of approximately 16 acres of what claimants characterized as “remaining land” following defendant’s taking of approximately 1.22 acres of land from what was claimants’ 17.3-acre parcel. Following a trial, the Court of Claims awarded claimants consequential damages with respect to what the court concluded was 12.835 acres of that parcel. Included in the 12.835 acres of land for which the court awarded consequential damages were 4.63 acres of land sold by claimants to Progressive Casualty Insurance Company (Progressive Parcel) for $1,800,000. That sale occurred in November 2005, i.e., before the taking of the aforementioned 1.22 acres of land in July 2006. Defendant now contends that the award of consequential damages was excessive inasmuch as the court erroneously awarded consequential damages for the Progressive Parcel. We agree. Rose Park Place Inc v State of New York, 2014 NY Slip Op 03070, 4th Dept 5-2-14

 

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