NY Appellate Court Orders Reinstatement of Permits for Replacement Signs Finding Good-Faith Reliance on Later-Rescinded Permit

Perlbinder Holdings, LLC (“Petitioner”) held permits for an outdoor advertising sign on its property as a result of the Manhattan Borough Building Commissioner’s (“MBBC”) determination that Petitioner’s most recent sign was a permissible replacement for a previous sign. Thereafter, the New York City Department of Buildings (“DOB”) revoked Petitioner’s permits for its current sign. Petitioner appealed to the Board of Standards and Appeals of the City of New York (“BSA”), who upheld the DOB’s revocation of the permits. The trial court denied petitioner’s appeal after which the petitioner appealed again.

The appellate court explained that the BSA must consider a petitioner’s “good-faith reliance on a later-rescinded permit when considering [a] petitioner’s application for a variance.” The court cited to both case law and zoning laws that support this contention. Here, Petitioner relied in good faith on the MBBC’s finding that the sign was permissible. As a result, the BSA was required to consider this evidence in its determination regarding the permits. Since Petitioner relied in good faith on the MBBC’s decision, it was improper here for the trial court to have denied Petitioner’s petition. The First Department reversed the trial court judgment and directed the DOB to reinstate the permits at issue and vacate the fines imposed in this respect.

Perlbinder Holdings, LLC v. Srinivasan, 2013 WL 5788250 (NYAD 1 Dept. 3/7/2013)