MSSSV won a tort/contract action commenced by a developer against the Village of Babylon and its officials, seeking to renew a revoked building permit as well as for monetary damages for the alleged lost value of the property.
In Racanelli v. The Village of Babylon, the developer sought damages sounding in contract, estoppel, violation of its due process rights and intentional/negligent misrepresentation arising from the Villageās revocation of a building permit and issuance of a stop work order.
The court held that the developerās due process claim was ineffective since the developer failed to prove that it had obtained a property right in the permit, as no substantial work was done on the property. Additionally, the developerās claim for unjust enrichment was dismissed due to the existence of a contract between the developer and the Village. Finally, the court also dismissed the action as to the Village based on the long-standing rule that a claim for estoppel will not lie against a Village absent a showing of bad faith.
Michael A. Miranda, Maurizio Savoiardo, and Ron Ben-Bassat worked on this matter. (Racanelli v. Village of Babylon et al, Supreme Suffolk: Judge Molia, August ,2010)