Corsello v. Verizon New York, Inc.
18 N.Y.3d 777
| NY | 2012Background
- Verizon attached a terminal box to plaintiffs' Brooklyn building, enabling service to multiple buildings and using plaintiffs' property without compensation.
- Plaintiffs allege a de facto taking under Transportation Corporations Law § 27 and seek just compensation, injunctive relief, and damages on four theories: inverse condemnation, unjust enrichment, trespass, and GBL § 349 deception.
- Supreme Court dismissed unjust enrichment but upheld inverse condemnation, trespass, and GBL § 349; later, the Appellate Division modified, reinstating inverse condemnation while dismissing other claims and denying class certification.
- Appellate Division held inverse condemnation time-barred by CPLR 214(4) but allowed Real Property Law § 261 to save the claim; it affirmed dismissal of the GBL § 349 and unjust enrichment claims and affirmed denial of class certification.
- Court of Appeals (this opinion) reinstates the inverse condemnation claim, but dismisses the GBL § 349 and unjust enrichment claims and affirms denial of class certification.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether inverse condemnation lies for de facto taking | Corsello argues de facto taking via attachment is recoverable under §27. | Verizon contends only trespass or permanent injury; inverse condemnation not available absent formal eminent-domain exercise. | Inverse condemnation claim valid; de facto taking may be recovered. |
| Whether Real Property Law § 261 tolls or saves the inverse condemnation claim | Section 261 saves timeliness regardless of modern methods. | Section 261 does not apply to de facto takings not involving adverse possession or prescriptive rights. | Section 261 applies; claim timely. |
| Whether General Business Law § 349 claim is time-barred | GBL § 349 claim should be timely under discovery rule after deception. | Three-year statute runs from deception or injury; estoppel not supported. | GBL § 349 claim time-barred. |
| Whether unjust enrichment claim survives | Unjust enrichment補ounds from defendant's wrongful taking/deception. | Duplicative of tort claims; not an independent basis when others fail. | Unjust enrichment claim dismissed. |
| Whether to certify a class action | Case suitable for class treatment; common questions predominate. | Class treatment inappropriate due to case-specific evidence and lack of predominance. | denial of class certification affirmed. |
Key Cases Cited
- Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (1982) (modern inverse condemnation covers de facto takings without formal eminent domain)
- Pappenheim v Metropolitan El. Ry. Co., 128 N.Y.436 (1891) (equitable relief for continuance of trespass may determine damages and convey right upon payment)
- Ferguson v Village of Hamburg, 272 N.Y. 234 (1936) (early use of inverse condemnation concept for taking by eminent domain power)
- United States v. Clarke, 445 U.S. 253 (1980) (inverse condemnation defined as recovery of just compensation for de facto takings)
- Tuffley v City of Syracuse, 82 A.D.2d 110 (1981) (inverse condemnation as remedy for continuous, permanent occupation cloaked with eminent domain power)
- General Stencils v. Chiappa, 18 N.Y.2d 125 (1966) (equitable estoppel in limitations cases requires concealment of wrongdoing with later misrepresentation)
- Simcuski v. Saeli, 44 N.Y.2d 442 (1978) (estoppel requires concealment that misleads plaintiff about wrongdoing)
- Gaidon v. Guardian Life Ins. Co. of Am., 96 N.Y.2d 201 (2001) (statute of limitations runs from injury, not deception; discovery rule not applicable here)
- Lombardi, Inc. v. Smithfield, 11 A.3d 1180 (Del. 1989) (irreparable harm is the most important factor for a preliminary injunction)
