Menachem Realty Inc. v. Srinivasan

Summary

The Appellate Division affirmed a judgment annulling the New York City Board of Standards and Appeals’ denial of Menachem Realty’s application to renew a building permit that lapsed following a zoning change. The court held that the Board acted arbitrarily and capriciously by failing to follow its own precedent and upheld the direction to reissue the permit and grant a six-month construction extension.

Holdings

1. An administrative agency acts arbitrarily and capriciously when it neither adheres to its own prior precedent nor explains its departure from that precedent on essentially the same facts. The Board's determination invalidating Menachem Realty's permit was arbitrary and capricious and lacked a rational basis.
2. Menachem Realty established entitlement to renewal of the permit and a six-month extension to complete the construction under New York City Zoning Resolution § 11-331 and the common law because its rights had vested.

Questions Presented

1. Whether the Board of Standards and Appeals acted arbitrarily and capriciously by finding Menachem Realty's permit invalid without adhering to or distinguishing its own prior determinations involving essentially the same facts.
2. Whether Menachem Realty established entitlement under New York City Zoning Resolution § 11-331 and the common law to renewal of the permit and a six-month extension to complete construction.

Disposition

affirmed