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Matter of 315 Ship Canal Parkway, LLC v. Buffalo Urban Dev. Corp.

Citation: 2022 NY Slip Op 06343Docket: 665 CA 21-01228

Court: Appellate Division of the Supreme Court of the State of New York; November 9, 2022; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, the petitioners, 315 Ship Canal Parkway, LLC, and Sonwil Distribution Center, Inc., appealed a decision by the Supreme Court of Erie County, which dismissed their amended petition concerning a land sale by Buffalo Urban Development Corporation (BUDC) to Uniland Development Company. The dispute arose after the original sales agreement was modified to include a photovoltaic solar energy system instead of the initially planned office or warehouse development. The Appellate Division found the appeal moot, as the ongoing solar energy field construction had significantly altered circumstances, precluding the resolution of an actual controversy. Notably, the petitioners had failed to obtain a preliminary injunction to preserve the status quo during litigation, influencing the mootness determination. The court also recognized that Uniland's actions were carried out in good faith and that reversing the construction would lead to substantial hardship. As none of the exceptions to the mootness doctrine applied, the court affirmed the lower court's dismissal of the petition without costs, effectively concluding the case in favor of the respondents.

Legal Issues Addressed

Exceptions to the Mootness Doctrine

Application: The court determined that none of the exceptions to the mootness doctrine applied, affirming the lower court's judgment.

Reasoning: The court concluded that none of the exceptions to the mootness doctrine applied, thereby affirming the lower court's judgment without costs.

Good Faith Construction and Hardship

Application: Uniland's construction was deemed to be conducted in good faith, and reversing the construction would cause significant hardship, supporting the mootness decision.

Reasoning: Furthermore, it was established that Uniland's construction was conducted in good faith and without unauthorized actions, and undoing the construction would impose significant hardship.

Mootness Doctrine in Appeal

Application: The Appellate Division dismissed the appeal as moot due to significant changes in circumstances, specifically the ongoing construction of the solar energy field, which rendered it impossible to resolve an actual controversy.

Reasoning: The Appellate Division dismissed the appeal as moot, agreeing with the respondents that the ongoing construction of the solar energy field significantly changed the circumstances, making it impossible for the court to resolve an actual controversy.

Requirement for Preliminary Injunction

Application: The court highlighted the importance of seeking a preliminary injunction to maintain the status quo during litigation, noting petitioners' failure to do so impacted the mootness determination.

Reasoning: The court noted that petitioners did not seek a preliminary injunction to maintain the status quo during the litigation, which is a crucial factor in mootness determinations.