Decisive Appellate Victory Sets New Precedent for Developer Rights in License Agreement Disputes

David M. Peraino, Esq. achieved a significant legal victory that will impact future negotiations and disputes over property access rights for developers. In a pivotal Appellate Division, First Department ruling, it was decided that neighbors cannot claim professional fees in cases where a license agreement is not granted, fundamentally altering the dynamics of RPAPL § 881 Actions.

In the case of 419 Partners LLC v. Eli Zabar et al., Mr. Peraino effectively argued that the statutory language of RPAPL 881 does not support the awarding of professional fees to neighbors without an actual license grant. The court's decision, which Mr. Peraino noted aligns with existing First Department precedents, supports an equitable balance by determining that if neighbors are not burdened with a license, developers should not be obligated to cover their legal and engineering fees.

This ruling disincentivizes neighbors from opposing access requests, knowing they may have to bear their own professional costs without reimbursement. It encourages more reasonable negotiations, leading to either voluntary access grants or more favorable terms in RPAPL 881 petitions, without the threat of opposing license awards.

For inquiries or further discussion on how this ruling might affect your development projects, feel free to reach out directly to David M. Peraino, Esq.