Third Circuit Holds That Option Purchaser Has Standing to Challenge Ordinance
By: Henry T. Chou, Esq.
Earlier this month, the the Third Circuit Court of Appeals ruled that Toll Brothers, which held an option to purchase real estate in Readington Township, had standing to challenge the Township's rezoning of the property, even though Toll Brothers did not fall into the typical categories of parties with standing.
The decision, styled Toll Brothers, Inc. v. Township of Readington, et al., opens the door for a whole new class of developers to challenge land use decisions by municipal bodies, as it expands the definition of parties with standing beyond those typically covered by the Municipal Land Use Law, i.e., property owners, contract purchasers and long-term tenants.
In finding that Toll Brothers possessed standing by holding an exclusive option to purchase the property for a certain number of years, the Court determined that Toll had invested a significant amount of time and resources into efforts to develop the property, and that it had alleged cognizable injuries that could be directly traced to the Township's rezoning.