When Can You Sue New York City as a Real Estate Developer?

When Can You Sue New York City as a Real Estate Developer?

The municipal government of New York City plays a central role in many real estate transactions, and this entity has the final say over whether certain projects are approved. What happens if you disagree with steps taken by the city against your real estate company? Is it possible to sue the city? How does real estate litigation work, and what can it help you accomplish? These are all questions you might want to ask your New York real estate litigation attorney during an initial consultation. 

Developer Sues NYC for Stalled Project

In August of 2024, the NY Post reported that a major developer in New York had filed a lawsuit against the city. The developer claimed that the city has caused unreasonable delays, directly contributing to $50 million in losses. The dispute revolves around the finishing touch on a life science campus along the East River waterfront – a tower that was never completed due to continuous delays. 

According to the developer, it had the right to construct a third tower on the life sciences campus due to an existing “binding option” that dates back to 2019. However, it seems that their right to construct a third tower was not as strong as they previously hoped. The developer has reportedly invested over $1.5 billion in the project, and these investments fueled the growth and creation of over one hundred biotech companies in New York City. 

What makes this report even more worrying is the alleged deception carried out by the local municipalities. According to the developer, they were “strung along” and given “false assurances” that their third tower would be approved. The project dates back to 2007 when a previous administration announced ambitious plans to build the life sciences campus. These plans were slightly altered after 2012, as superstorm Sandy highlighted the need for a seawall. 

The seawall caused considerable complications, requiring the developer to integrate their third tower with the storm-resistant barrier. Although they initially complied with these requirements, the developer became frustrated when the city constantly changed the plans for this seawall. 

While the outcome of this lawsuit is not yet clear, it illustrates one potential reason for suing the city. Real estate litigation can take many forms, and various defendants might be named in these lawsuits. Suing the city is possible, although it can be quite challenging. If you’re wondering whether you might be able to file a similar lawsuit, consider working alongside an experienced real estate lawyer. 

Find an Experienced Real Estate Litigation Lawyer in New York

If you have been searching for an experienced real estate litigation attorney in New York, look no further than The Glassman Law Group. Over the years, we have helped numerous developers and real estate companies pursue positive results. It may be possible to sue the city under certain circumstances, and the rewards of legal action can be significant. Reach out today, book a consultation, and get started with an action plan.