Cover Story New York Real Estate Law Reporter

The ruling from New York's highest state court, although straightforward on its face, has important implications for both long-existing settlement agreements and when considering drafting future agreements settling disputes in the context of the Rent Stabilization Law.

The effectiveness of the Good Cause Eviction Law will largely depend on its implementation and the local adaptations that municipalities outside New York City decide to enact. Both landlords and tenants should stay informed about the specifics of how this law is applied in their respective locales and how it will be interpreted and handled in the judicial system.

What responses are available to a landlord after a false claim of discrimination? The Court of Appeals faced that issue and held that a landlord may not seek to recover the damages it has suffered as a result of a false discrimination claim, so long as the claim was made in good faith.

In April, the U.S. Supreme Court decided Sheetz v. County of El Dorado, holding that legislatively-imposed fees on development are subject to the same constitutional scrutiny as fees imposed by administrative bodies. The Court's decision may have an impact on fees New York municipalities impose on developers in lieu of developer-provided parkland.

Recently, there have been several instances in which municipalities have been challenged by property owners claiming that the municipal boards have utilized delaying tactics and other actions as a pretext to prevent development of their properties.

In a case of first impression, the Appellate Division, First Department recently addressed a split in the decisions of the lower courts as to the scope of the New York City Guaranty Law.

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.

In a reversal of the District Court, the Second Circuit Court of Appeals found that the failure of a local Zoning Board of Appeals to hold a hearing on an appeal from the determination of the building inspector, constituted a final determination that was ripe for judicial review.