Newhook v. Hallock
Court: Appellate Division of the Supreme Court of the State of New York; May 4, 1995; New York; State Appellate Court
An appeal was made by plaintiff J. Peters against an order from the Supreme Court of Sullivan County that granted the Town of Forestburgh’s motion to dismiss his complaint for failure to state a cause of action. In July 1989, Peters entered a contract to purchase a residence from Robert and Florence Hallock, with the property conveyed in September 1989. After discovering structural defects in July 1990, Peters reviewed the Town’s Building Department file and found that a certificate of occupancy had been issued to the Hallocks shortly before the sale. Peters alleged that the Town negligently issued the certificate of occupancy because the residence did not comply with building construction codes. The Town moved to dismiss the case, arguing that Peters had not established a valid cause of action. The Supreme Court agreed and dismissed the claim against the Town. The court reiterated that municipalities are not liable for failing to enforce statutes or regulations unless a special relationship exists that creates a duty to a specific class of individuals. Such a special duty could arise through statute, regulation, or voluntary action that induces reliance on the municipality’s exercise of reasonable care. However, the court found no evidence of such a special relationship between Peters and the Town, noting that the certificate was issued to the Hallocks and that Peters reviewed the Town’s records only after his purchase. The issuance of a certificate of occupancy was deemed a governmental function, for which the municipality cannot be held liable for damages. The order to dismiss was affirmed, with costs awarded to the Town.