Owner claimed an additional $3 million in attorney’s fees, based on disputes over the valuation of property. In 2014 the New York State Urban Development Corporation took by eminent domain the property of TKGSM-NY, LLC, a Brooklyn business. The State ultimately paid over $25 million to compensate the business for its property located at 718-728 Atlantic Avenue, Brooklyn. The owner asserted that the lengthy efforts to resolve the differences between the appraisal offered by the New York State Urban Development Corporation and the appraisal offered by the owner had resulted in excessive legal expenses. The owner sought $3 million in attorney’s fees as additional compensation for its property.

Supreme Court Justice Wayne Saitta rejected the owner’s request for compensation beyond the $25 million, ruling that the legal fees were not so high as to make them inadequate and unjust. The court found that the attorney’s fees amounted to 12.2% of the award and was far smaller than other eminent domain cases that had successfully sought additional attorney’s fees.

(CIT) TKGSM-NY, LLC v. New York State Urban Development Corp., 90 N.Y.S.3d 824 (Sup. Ct., Kings County 2018)

By: Chris Murphy (Chris is a New York Law School graduate, Class of 2019).