A recent ruling by a New York Supreme Court judge in Albany has declared that the city comptroller, Brad Lander, did not have the authority to accuse BLDG Management of construction wage theft on a 421-a project. The judgment was made following a lawsuit filed by BLDG against New York State challenging Lander’s $40 million claim for unpaid wages and penalties on a tax-abated building at 212 E. 44th St.
Judge Daniel Lynch sided with BLDG and deemed the enforcement method used by Lander as unconstitutional due to its bypassing of the state’s Supreme Court system. This system allowed for both the comptroller’s office and Office of Administrative Trials and Hearings (OATH) to act as judge and prosecutor without any avenue for appeal, violating separation of powers doctrine according to BLDG. This ruling could potentially impact other developers facing OATH decisions regarding 421-a enforcement.
While this is seen as a victory for BLDG, it may not be over yet as the comptroller’s office is considering their next steps in response to this ruling. Additionally, there may be changes made in how government enforces statutes like 421-a against developers moving forward.
