A New York Supreme Court judge in Albany ruled that New York City Comptroller Brad Lander lacked the authority to accuse BLDG Management of construction wage theft on a 421-a project. The judgment stemmed from a suit filed by BLDG against New York State, challenging Lander’s $40 million claim of unpaid wages and penalties for a 421-a tax-abated building at 212 E. 44th St.  

Judge Daniel Lynch sided with BLDG, declaring the enforcement method unconstitutional, as it bypassed the state’s Supreme Court system. Under the system, the comptroller’s office and the Office of Administrative Trials and Hearings (OATH) acted as judge and prosecutor, with no avenue for appeal. BLDG argued that this violated the separation of powers doctrine. This ruling could impact any developer facing an OATH decision over 421-a enforcement. 

While BLDG sees this as a victory, the dispute may not be over yet, as the comptroller’s office is considering its next steps. The ruling could also lead to changes in how the government enforces the 421-a statute against developers.