Real Estate Investor Settles Lawsuit Filed By Department of License and Inspection
Industry
Real Estate Development
Challenge
A real estate investor renovating a single-family property into a duplex faced L&I violations, daily monetary fines, litigation, and the need to restart the zoning variance process after prior zoning approvals proved insufficient.
Results
Nochumson P.C. secured the required zoning and building permits, delayed ongoing litigation while the variance process proceeded, and negotiated a settlement substantially reducing the client’s financial exposure.
Key Service
Zoning, Litigation
Zoning and permitting issues can quickly escalate into costly litigation if they are not addressed strategically and efficiently.
Nochumson P.C.
Zoning & Land Use
About the Client
Nochumson P.C. represented a real estate investor renovating a single-family property in North Philadelphia into a residential duplex with an expanded two-story rear addition.The Challenge
During construction, the City of Philadelphia’s Department of Licenses and Inspections issued a Notice of Violation after determining that the project lacked the required zoning and building permits.
The violations exposed the client to daily monetary penalties while also preventing the client from obtaining the permits necessary to continue and legalize the renovation work.
Complicating matters further, a prior zoning variance obtained by another law firm failed to disclose that the proposed multifamily use involved an expanded building structure. As a result, the client was forced to restart the zoning variance process before the necessary building permits could be issued.
At the same time, litigation initiated by L&I remained pending against the client in state court.
The Solution
Nochumson P.C. worked to restart the zoning variance process while simultaneously coordinating with L&I to limit the enforcement actions being pursued against the client.
While the zoning appeal remained pending before the Zoning Board of Adjustment, the firm obtained repeated continuances in the litigation matter to prevent the case from moving forward before the permitting issues could be resolved.
Nochumson P.C. ultimately guided the client through the zoning process, secured the required zoning and building permits, and negotiated directly with L&I regarding resolution of the enforcement matter.
Zoning approvals and building permits must align with the actual scope of a proposed development project. Inaccuracies during the zoning process can delay construction and expose property owners to significant enforcement actions and financial penalties.
The Results
After obtaining the required zoning and building permits, Nochumson P.C. successfully negotiated a settlement with L&I resulting in withdrawal of the pending litigation against the client.
As part of the settlement, L&I also waived nearly all of the monetary fines previously assessed against the client, saving the investor tens of thousands of dollars while allowing the renovation project to proceed.
