Legal Question in Business Law in New York
Loss of Business
A construction company performing repairs next door to us erected extensive scaffolding that substantially obscures our facade. We believe that this has hurt our business tremendously as we depend greatly on walk-in business. Do we have a cause of action? How should we proceed?
2 Answers from Attorneys
Re: Loss of Business
You may have a "private nuisance" claim. As discussed in the leading New York case, Copart Ind. v. Consolidated Edison Co., 41 N.Y.2d 564, 394 N.Y.S.2d 169 (1977), an "essential feature" of a private nuisance is "an interference with the use or enjoyment of land." Id., at 568. That case said that liability for damages on a private nuisance theory may be established if the conduct causing the invasion of use and enjoyment of land was either: (1) intentional, or (2) negligent or reckless, or (3) actionable under rules governing abnormally dangerous activity. Even more specifically, the elements of a private nuisance cause of action in New York are: (1) an interference "substantial" in nature, (2) intentional in origin, (3) unreasonable in character, (4) with a person's property right to use and enjoy land, (5) caused by another's conduct in acting or failure to act. An action for private nuisance cannot be sustained without a showing of damages. The "substantial interference" element requires a showing that the land is reduced in value because of the conduct you're complaining about.
Re: Loss of Business
Depending on the extent of your damage, as well as the possibility of insurance coverage, you may have an action for a loss of business claim...this area of law does happen to be one of our specialties, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.
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