Zutt v. State

99 A.D.3d 85, 949 N.Y.2d 402

This text of 99 A.D.3d 85 (Zutt v. State) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zutt v. State, 99 A.D.3d 85, 949 N.Y.2d 402 (N.Y. Ct. App. 2012).

Opinion

OPINION OF THE COURT

Angiolillo, J.P.

More than a decade ago, homeowners William A. Zutt and Diane Zutt (hereinafter together the Zutts) commenced the first in a series of actions and proceedings to prevent the State of New York from draining stormwater over their property. The Zutts have prevailed in all previous litigation, collecting damages for trespass and obtaining injunctive relief. Nevertheless, in 2010, the State invoked its powers of eminent domain and sought to condemn a portion of the Zutts’ property for a drainage easement. The Zutts commenced this proceeding pursuant to CPLR article 78 to review, and ultimately to enjoin, the condemnation, and action for declaratory and permanent injunc[89]*89tive relief, and the Supreme Court, in effect, granted the petition and permanent injunctive relief, finding, among other things, that the State had acted in bad faith. In this fourth appearance in our Court concerning the underlying dispute, we agree with the Supreme Court, and take this opportunity to distinguish the concepts of bad faith and lack of a proper public purpose in the context of condemnation proceedings.

Factual Background and Previous Litigation

In April 2000 the Zutts purchased their home in an environmentally sensitive, historic area on New York State Route 9D in Garrison, a New York scenic byway. In September 2000 their property was damaged by stormwater discharged from a culvert under Route 9D; the water had been directed into the culvert by a drainage system of catch basins and pipes. After consulting an engineer, the Zutts repaired the damage and installed a gabion retaining wall on their property.

In June 2001 the Zutts’ property was again damaged by stormwater discharged from the culvert. The Zutts contacted the New York State Department of Transportation (hereinafter the DOT), which sent an engineer to assess the damage. In November 2001 the DOT informed the Zutts that the State would not undertake remedial or corrective measures.

Consequently, in January 2002, the Zutts filed a claim against the State in the Court of Claims to recover damages for trespass and nuisance. In defense, the State asserted that it had a prescriptive easement based upon its installation in 1984 of the drainage system of catch basins and underground pipes, and the existence of the culvert under Route 9D since, at the latest, 1928.

In a decision after trial dated July 27, 2006 (hereinafter Zutt I), the Court of Claims (19 Misc 3d 1131[A], 2006 NY Slip Op 52611[U] [2006, Scuccimarra, J.]) explained that the State failed to establish a prescriptive easement by clear and convincing evidence, and that stormwater drainage over the Zutts’ property constituted a continuing trespass. The Court of Claims noted that “the State [had] altered drainage conditions by the use of pipes and catch basins, thus increasing the velocity of any water collected, and increasing the erosion potential of any water discharged,” while failing to improve the culvert, abate the flow, maintain the channel emanating from the culvert, or control potential damage (2006 NY Slip Op 52611[U], *13). “[W]ithout maintenance efforts, the channel became deeper and wider, and [90]*90will continue to widen” (id.). The Court of Claims found the State “solely responsible” for the damage to the Zutts’ property resulting from the storm in June 2001, and subsequently entered judgment in favor of the Zutts in the amount of $3,000. The State appealed to this Court, and we affirmed the judgment entered upon the decision in Zutt I (see Zutt v State of New York, 50 AD3d 1133 [2008]).

Meanwhile, after Zutt I, but prior to the entry of the final judgment, the Zutts wrote to the State, requesting that it take measures to ameliorate the continuing trespass in order to avoid further litigation. When the State failed to respond, the Zutts commenced an action in the Supreme Court, Putnam County, seeking injunctive relief and damages for inverse condemnation. On January 31, 2007, upon granting the State’s pre-answer motion, the Supreme Court (O’Rourke, J.) dismissed the complaint for lack of subject matter jurisdiction (hereinafter Zutt II). The Zutts appealed from so much of Zutt II as dismissed the cause of action for permanent injunctive relief, and we reversed, reinstating that cause of action (see Zutt v State of New York, 50 AD3d 1131 [2008]).

Thereafter, the State answered the complaint, asserting once again, among other things, the defense of prescriptive easement, a defense rejected by the Court of Claims and this Court in Zutt I. The Zutts moved for summary judgment, and the State opposed the motion. The parties each submitted affidavits of their respective experts. The Zutts’ expert, civil engineer Todd W Atkinson, submitted a proposal for the State to run additional subsurface piping for approximately 250 feet within its right-of-way on Route 9D to divert the stormwater to a natural stream north of the Zutts’ property. In an order entered October 20, 2009 (hereinafter Zutt III), the Supreme Court (O’Rourke, J.) granted the Zutts’ motion for summary judgment on the cause of action for a permanent injunction, and directed the State to implement Atkinson’s stormwater diversion plan. The Supreme Court noted that, in Zutt I, the issues of the State’s continuing trespass and lack of a prescriptive easement had been finally determined in favor of the Zutts; the State had “known of the condition and resulting damage to [the Zutts’] property for many years and had done nothing to prevent the continuing trespass.”

The State appealed from Zutt III, thus invoking the automatic stay provision of CPLR 5519 (a) (1). During the pendency of the appeal, the Zutts filed another claim in the Court of Claims to [91]*91recover damages resulting from a storm that occurred on July 17, 2009. The Zutts moved for summary judgment on the issue of liability, and the State cross-moved for leave to amend its answer to include, once again, the defense of prescriptive easement. In an order dated March 3, 2010 (hereinafter Zutt IV), the Court of Claims characterized the State’s assertion of a prescriptive easement as “puzzling” in light of Zutt I, decided nearly four years earlier, which finally determined that issue against it. The Court of Claims granted the Zutts’ motion and denied the State’s cross motion, finding that, as the State conceded, the State had done nothing to stop the continuing trespass determined in Zutt I, and nothing to comply with the permanent injunction granted in Zutt III.

On May 4, 2010, two months after Zutt IV, more than six months after Zutt III, and while the appeal from Zutt III was pending, the State issued a notice of condemnation to the Zutts for a “permanent easement” over their property. The notice stated that the DOT

“ha[d] determined that reconstruction and reconfiguration of the drainage ditch over [the Zutts’] property, along basically the same drainage course these storm waters have flowed for decades, remains the safest, most efficient, most cost-effective, and least disruptive means to address the State’s ongoing Rt. 9D safety and maintenance responsibilities to the traveling public.”

The proposed permanent easement is “irregular in shape,” “[l]ong and narrow,” with “various widths,” and consists of a total area measuring approximately 15,411 square feet.

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99 A.D.3d 85, 949 N.Y.2d 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zutt-v-state-nyappdiv-2012.