New Jersey Land Use Update

There were no reported decisions on land use or zoning in the past two weeks, but there was one reported decision on eminent domain last week: In Borough of Merchantville v. Malik & Son LLC, et al., an Appellate Division panel affirmed a trial court’s holding that a borough was not required to negotiate with a lien holder — even though that party had foreclosed on the property at issue — before proceeding to an action against the owner of record, as described in N.J.S.A. 20:3-6. In an opinion written by Presiding Judge Francine I. Axelrad, the panel followed a rule set down in a 1997 case, City of Atlantic City v. Cynwyd Investments, which had held that the title owner was the proper negotiating partner for a public authority in a condemnation; the panel was unpersuaded by attempts to distinguish the earlier holding (which was based, among other things, on the practicality of not requiring the government to enter negotiations with every potentially interested party) from the case on appeal. On a separate point, the court held that the the owner of record in this case, who had rejected the Borough’s one-time offer, had failed to subsequently provide evidence that would counter the fairness of the Borough’s underlying appraisal. Among other things, the court reiterated a rule that previous purchase offers for much higher amounts (but which never manifest as sales) will not negate the findings of a formal appraisal.

Among unpublished opinions, one recent case addressed an inverse condemnation claim flowing (in part) from the actions of a planning board. In Woodruff v. U. S. Home Corp., et al., an Appellate Division panel affirmed a trial court’s granting of summary judgment to the Township of Upper Deerfield, in Cumberland County, based on the fact that the challenge to the planning board’s approval of a subdivision was time-barred by Rule 4:69-6(a), and did not meet any of the established criteria for extending the 45-day period of time, under Rule 4:69-6(c), “in the interest of justice.” The court also affirmed the trial court’s decision that storm water runoff from the subdivision’s board-approved storm water management system did not constitute a compensable inverse condemnation. Following the federal criteria for takings claims, the A.D. based its affirmation on the lack of any permanent, physical occupation of the property, and the minimal impact of intermittent water in an unused ravine on the claimants’ use of their property. As always, the temporary New Jersey Courts links are alive for now, but the opinions will be archived at the Rutgers Law Library next week.