Kenford Co. v. County of Erie
Court of Appeals of New York
537 N.E.2d 176 (1989)
Kenford (plaintiff) agreed to donate land to Erie County (defendant) for a sports stadium in exchange for the county beginning construction within twelve months and negotiating a lease with Dome Stadium, Inc. (DSI) (plaintiff) that would generate specified minimum revenues, including from increased property tax assessments on Kenford's own surrounding "peripheral lands." The county was unable to obtain construction bids within its appropriated budget and terminated the contract; Kenford and DSI sued for breach, seeking specific performance or, alternatively, damages for the lost appreciation value of Kenford's peripheral land. The trial court awarded such appreciation damages, and the county appealed.
Whether a party to a construction project is liable for the appreciation value of peripheral land held by the non-breaching party if the project is cancelled.