Last week, a judge ruled to allow our clients Toll Brothers and
Starwood Capital Group to continue construction of the Pierhouse, a
$320 million hotel and condominium complex in Brooklyn Bridge
Park.
The decision is important for real estate developers,
investors and lenders, because it holds that the four-month statute
of limitations for challenging administrative determinations cannot
be circumvented by couching a complaint as a declaratory judgment
action. A contrary ruling would have paved the way for legal
challenges to be made long after government approvals have been
obtained for a development project. This would have been
detrimental to developers, investors and lenders who rely on such
approvals.
In April, a group called Save the View Now brought an action in
Kings County Supreme Court, seeking a declaration that both the
hotel and condominium being built were in excess of the height
requirements specified in the governing documents for the project.
Herrick's litigators were brought in to oppose the group's
application for a temporary restraining order and preliminary
injunction to stop construction of the project pending the
litigation.
On June 12th, Justice Lawrence S. Knipel denied Save the View
Now's motions in their entirety, holding that the group could
not demonstrate a likelihood of success on the merits. In doing so
the court found that the Pierhouse development complied with the
law, and the group's challenge was untimely.
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