Coe v Village of Waterloo, 229 AD3d 2119 (4th Dept 2025) – Municipality Liability

Matt successfully defended municipal and contractor defendants in a New York property damage action alleging trespass, nuisance, and injunctive relief based on the alleged artificial diversion of stormwater onto the plaintiff’s properties. The claims arose from a courthouse renovation project that connected a new stormwater system to a historic underground culvert.

The courts held that the claims were time-barred under the General Municipal Law, concluding that the alleged injury accrued when flooding first became apparent following completion of the project. The court rejected application of the continuing wrong doctrine, finding that the plaintiff’s damages flowed from a single, completed construction project rather than ongoing unlawful acts. With the substantive claims dismissed, the request for injunctive relief was also denied.

Practice Impact: The decision reinforces statute-of-limitations defenses, limits the continuing wrong doctrine, and provides important guidance for insurers and defense counsel handling long-tail property damage, flooding, and drainage claims involving municipal and construction projects.

Photo by Vihan Dalai

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