November 13, 2024

DSB Obtained an Order from the U.S. Court of Appeals for the Second Circuit affirming the dismissal of constitutional claims against a Long Island town. A real estate developer was cited for departing from their approved plans, and challenged whether it was proper to issue a stop work order. It brought an action in state court seeking relief under Article 78, the State’s administrative review procedure, and also seeking declaratory relief challenging portions of the Town Code as unconstitutional; they sought to amend their complaint in State Court to allege, among other things, a claim that the Town had violated the Equal Protection Clause. The State Court denied the request to amend the complaint and dismissed the proceeding. The developer then sued in Federal Court, arguing that its equal protection claim and other constitutional arguments had not been decided by the State Court. After careful review, the Federal District Court dismissed the action, explaining that it was barred by the prior state court action. On review, the Second Circuit agreed, explaining that while ordinarily administrative review in a state court under Article 78 does not automatically bar a plaintiff from filing related constitutional claims, because the plaintiff had alleged and the state court had addressed some constitutional claims in addition to seeking administrative review, that was a full and final determination of the dispute, and the plaintiff could not file a subsequent federal action based upon the principal of res judicata.