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Condemnation Law: Dismissal of Fixture Claim, No. 7 Subway Line Extension Project

Carter Ledyard, acting as Special Condemnation Counsel to The City of New York, together with attorneys from the Corporation Counsel’s Office, was successful in an appeal presented to the Appellate Division of Supreme Court dismissing in to a fixture claim filed in connection with acquisition of a building by eminent domain related to the No. 7 Subway Line Extension – Hudson Yards Rezoning and Development Project. The dismissal was based on equitable principles under the Constitutional mandate requiring payment of just compensation for acquired property.    The court held that since the fee claimant was paid based on a hypothetical highest and best use which required demolition of the existing structure and thus destruction of the fixtures, the fixture claimant, which was under common ownership and control with the fee claimant, was not entitled to additional compensation for the fixtures. Partner John R. Casolaro and counsel Lee A. Ohliger, acting as co-counsel with Assistant Corporation Counsel Rochelle Cohen of the New York City Law Department, represented the City in this matter.

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