Todd E. Soloway

Pryor Cashman client BLDG Management, a New York City-based real estate investment and management company, won a major victory in New York State Supreme Court in Albany.

BLDG was being sued by New York City Comptroller Brad Lander under the former New York Real Property Tax Law §421-a in an administrative proceeding before the New York City Office of Administrative Trials and Hearings (“OATH”). The Comptroller alleged that a BLDG affiliate failed to meet the minimum wage requirements under 421-a and sought $40 million in damages.

However, in a separate action commenced by BLDG in New York State Supreme Court, Albany County, the Hon. Daniel C. Lynch declared unconstitutional the provision of 421-a by which the Comptroller’s office was authorized to enforce the wage requirements.

In BLDG 44 Developers LLC v. State of New York, BLDG argued that the former 421-a statute improperly prevented BLDG from seeking judicial review of determinations by OATH and the Comptroller, in violation of BLDG’s due process rights and the separation of powers.

In its coverage of the case, Law360 cited Pryor Cashman Partner Todd Soloway, co-chair of the Litigation Group and chair of the Hotel + Hospitality Group and Real Estate Litigation Practice, who said that he believed this should be the end of the matter:

“I’m not sure what the Comptroller’s Office is going to do,” BLDG counsel Todd Soloway said. “Any other proceedings that the comptroller has in [the Office of Administrative Trials and Hearings] are now done; they cannot proceed.”

BLDG is represented by Partner Todd E. Soloway, and Associates Itai Raz and Lawrence Keating.

Read more about the case using the links below (subscription required).