Continental Building Co. v. Town of North Salem
On Thursday, April 27, 1995, the Supreme Court, Appellate Division, Third Judicial Department, upheld the invalidation of the Town of North Salem’s Zoning Ordinance in Continental Building Company, Inc. v. The Town of North Salem, finding the ordinance unconstitutionally excluded affordable and multi-family housing.

In a unanimous, strongly worded, eight page Opinion and Order, the Appellate Division affirmed the Westchester County Supreme Court’s determination that North Salem’s Zoning Ordinance was unconstitutional under the mandates set forth by the Court of Appeals of the State of New York in the case of Berenson v. The town of New Castle. In a detailed and careful review of the testimony and evidence introduced during the trial, the Appellate Court held that North Salem’s Zoning Ordinance failed both prongs of the Berenson test. It failed to meet the housing needs emanating from the Town of North Salem itself and also failed to meet the housing needs of the region in which North Salem is located.
Citing decisions of New York’s highest court, the Appellate Court stated: “Defendant’s contention that Berenson and its progeny eschew any requirement of affordability is simply wrong. The Court of Appeals held that exclusionary zoning is a form of racial or socioeconomic discrimination which we have repeatedly condemned.”
On Continental Building Company’s cross-appeal from the Trial Court’s award of legal fees to it under Federal Civil Rights Law the Appellate Court held that the Plaintiff was the prevailing party in the litigation and that there was “no justification for the reduction in the fees by the Supreme Court.” The Appellate court reinstated $107,000 in counsel fees which had been sought by Plaintiff, but not awarded, bringing the total legal fee award to Plaintiff’s counsel to $426,782.18. Continental Building Company intends to apply promptly for an award of additional costs and legal fees incurred during the course of the appeal. (See: 211 A.D.2nd 88 (3rdDept1995))

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