45 N.Y.2d 563 (1978)
A municipality may be equitably estopped from enforcing a zoning change to deny a building permit when the permit holder was prevented from acquiring vested rights due to a combination of community interference and the municipality’s own actions or inaction.
Summary
Faymor Development Co. sought to reinstate a building permit that was automatically revoked due to a zoning change. Faymor argued that it was prevented from completing construction and acquiring vested rights because of illegal interference by area residents and delaying tactics by municipal officers. The New York Court of Appeals held that the city was estopped from denying reinstatement of the permit because Faymor’s failure to complete construction was a direct result of the combined actions of protesting residents and the city’s own actions and inaction. The court emphasized that a municipality cannot benefit from its own inaction when it contributes to preventing a permit holder from vesting their rights.
Facts
Faymor owned land in Far Rockaway, NY, and obtained a building permit in December 1972 to construct a six-story multiple dwelling, a permitted use under the existing zoning (R3-2). In the summer of 1974, before construction began, the building department revoked the permit based on community objections. The Board of Standards and Appeals (BSA) reinstated the permit in July 1974. Area residents then obstructed construction by physically blocking access to the site beginning August 16. Despite court orders directing them to cease, the protesters continued their obstruction. Faymor requested police assistance, which was not effectively provided. On October 10, the property was rezoned to R3-1, which only allowed one- and two-family homes. On October 11, the building department revoked Faymor’s permit under a zoning resolution stating permits lapse if the foundation is not completed before a zoning change.
Procedural History
Faymor appealed to the BSA, which denied reinstatement of the permit. Faymor then filed an Article 78 proceeding to annul the BSA’s determination. The Supreme Court dismissed the petition. The Appellate Division reversed and directed the permit to be reinstated for 103 days, representing the time lost due to the improper revocation, court-ordered stays, and resident actions. The City appealed to the Court of Appeals.
Issue(s)
Whether a municipality can be equitably estopped from asserting a landowner’s failure to complete construction as a basis for denying reinstatement of a building permit, when the landowner’s failure to complete construction was caused by a combination of community interference and the municipality’s own actions or inaction.
Holding
Yes, because the city’s actions and inaction, combined with the illegal actions of area residents, prevented Faymor from completing its foundation and vesting its rights under the permit. The city cannot now benefit from this failure to complete construction.
Court’s Reasoning
The Court of Appeals reasoned that while the BSA typically lacks the power to reinstate a permit after a zoning change unless the foundation is complete, a court can estop the city from asserting this requirement when the city itself contributed to the failure to complete construction. The court distinguished this case from situations where the failure to complete construction was solely the fault of the landowner. Here, Faymor was ready and willing to build, had incurred significant expenses, and was prevented from doing so by a combination of factors. These included the initial improper revocation of the permit, the delaying lawsuits and illegal blockades by area residents, and, critically, the city’s failure to adequately enforce the law and protect Faymor’s right to build. The court highlighted the city’s initial revocation of the permit on technical grounds only after community opposition arose, and the police’s inaction while protesters blocked construction. Quoting the Appellate Division, the Court stated, “[T]he rule of law must prevail. The right to proceed pursuant to a valid building permit, no less than any other civil right, is not to be lost because others resort to the streets, or because governmental authorities have improperly placed hurdles barring the appropriate exercise of such right.” While municipalities typically aren’t liable for damages for failure to provide adequate services (citing Riss v. City of New York), they can be estopped from claiming the benefits of their own inaction (citing Matter of Pokoik v. Silsdorf and Matter of Our Lady of Good Counsel v. Ball). The Court concluded that it would be unfair to allow the city to benefit from Faymor’s failure to complete construction when that failure was a direct result of the combined actions of the community and the municipality’s actions and neglect. The Court emphasized a party can be ordered to do equity and a court’s equitable power to order the board to grant relief does not depend on the existence of statutory authority.