RRI Realty Corp. v. Incorporated Village of Southampton
United States Court of Appeals for the Second Circuit
870 F.2d 911 (1989)
- Written by Robert Cane, JD
Facts
RRI Realty Corp. (RRI) (plaintiff) sought to renovate a mansion in the Incorporated Village of Southampton (defendant). RRI discussed its plans for the renovation with the Southampton building inspector. The inspector issued a limited building permit to RRI for initial minor renovations. After RRI made plans for major renovations, which exceeded the height restrictions in the Southampton zoning ordinance, RRI needed to seek two variances and a comprehensive building permit. RRI received an initial height variance from the Zoning Board of Appeals (ZBA) and began construction in 1981. In spring of 1983, RRI finalized its design for renovations and submitted its plans to Southampton’s Architectural Review Board (ARB). After the ARB approved RRI’s plans, RRI submitted a comprehensive building-permit application to the inspector. RRI also applied for a second height variance for renovations not covered by the initial variance. While the variance application was pending, RRI and the inspector divided the permit application into three stages. Stage two included the more significant renovations that conformed to the ordinance and the initial variance. In early 1984, RRI submitted revised plans to the inspector for a permit for the stage-two renovations. The inspector referred the application with RRI’s revisions to the ARB for final consideration as required by ordinance. The ordinance granted the ARB broad discretion in rejecting plans that were not harmonious with the community. In May 1984, the inspector told RRI that a permit would soon be issued. However, the ARB took no action, so no permit was issued. After community opposition grew, the mayor of Southampton issued a stop-work order regarding stage-two construction on May 17 for lack of a permit. On June 1, 1984, RRI filed an action in the New York trial court to compel Southampton to issue the stage-two permit and cancel the stop-work order. The trial court found for RRI and ordered the issuance of a permit. In August 1986, RRI received its permit. Afterward, RRI filed an action in the federal district court for damages caused by the delay in issuing the stage-two permit. RRI claimed that Southampton had arbitrarily deprived RRI of its property interest in the stage-two permit and violated its substantive-due-process rights. The jury found for RRI. Southampton appealed.
Rule of Law
Issue
Holding and Reasoning (Newman, J.)
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