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Matter of Merlin Entertainments Group U.S. Holdings, Inc. v. 409 Signatories to the challenged Referendum Petition

Citation: 2018 NY Slip Op 2627Docket: 2017-11538

Court: Appellate Division of the Supreme Court of the State of New York; April 18, 2018; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the appellate case involving Merlin Entertainments Group U.S. Holdings, Inc. and 409 signatories, the New York Supreme Court's Appellate Division reversed a lower court decision that invalidated a referendum petition concerning the conveyance of town-owned land for a LEGOLAND development. Initially, the petition had been invalidated by the Supreme Court, prompting an appeal by the signatories. The appellate court found that the petition met the requirements of Town Law § 91, which mandates that a permissive referendum be initiated within 30 days of a town board resolution if a valid petition is filed. The court contrasted this case with Matter of McComb v. Town of Brookhaven, where inadequate petition detail led to invalidation, and concluded that the current petition adequately identified its purpose. The appellate court dismissed the proceedings to invalidate the petition, asserting that further detail was unnecessary and that imposing additional requirements would be inappropriate. Consequently, the appellate court ordered that the referendum should proceed, rejecting arguments that the referendum had become moot over time. The decision was unanimously agreed upon by the justices involved.

Legal Issues Addressed

Judicial Review of Referendum Petitions

Application: The court rejected calls for imposing additional conditions not present in statute, affirming the petition's validity despite arguments for more detail.

Reasoning: The court rejected calls for additional detail in the petition, asserting that imposing new conditions not present in the law would be inappropriate.

Permissive Referendum Timing

Application: The court emphasized that a permissive referendum must take effect 30 days after a town board's act or resolution unless a petition is timely filed.

Reasoning: Town Law § 91 requires a permissive referendum to take effect 30 days after a town board's act or resolution unless a petition from qualified electors is filed within that timeframe.

Requirement for Petition Detail

Application: The court determined that the referendum petition contained sufficient detail about the transaction, distinguishing it from previous cases where lack of detail invalidated petitions.

Reasoning: The court distinguished this case from Matter of McComb v. Town of Brookhaven, where insufficient details invalidated the petition; here, the petition sheets adequately outlined their purpose, complying with the statutory requirements.

Validity of Referendum Petitions

Application: The court held that the referendum petition was valid as it met the statutory requirements under Town Law § 91.

Reasoning: The referendum petition met these requirements by clearly identifying the resolution and indicating the signatories' protest and request for a referendum.