Matter of Rosbaugh v. Town of Lodi

Summary

The Court held that treble damages under RPAPL 861 are punitive in nature because the statute uses a good-faith provision to mitigate the enhanced award and its history reflects purposes of punishment and deterrence. Because municipalities cannot be subjected to punitive damages, the Town could not be liable for the treble portion of the arbitration award. The Court therefore reversed and granted the petition to vacate the award in part.