ST. JAMES, N.Y., Nov. 25, 2011 /PRNewswire/ -- Gyrodyne Company of America, Inc. (NASDAQ:GYRO) announced today that the Appellate Division of the Supreme Court, Second Department, of the State of New York issued a unanimous Decision and Order in Gyrodyne's condemnation litigation affirming the judgment of the Court of Claims in June 2010 requiring the State to pay Gyrodyne an additional $98,685,000 plus statutory interest of nine percent from the date of taking on November 2, 2005 to the date of payment. The Appellate Division also affirmed a related judgment in favor of Gyrodyne entered by the Court of Claims in February 2011 for costs, disbursements and expenses in the amount of $1,474,940.
The Decision and Order was issued in connection with Gyrodyne's claim brought in April 2006 for just compensation for the 245.5 acres of its Flowerfield property in St. James and Stony Brook, New York (the "Property"), taken by the State. The State had paid Gyrodyne $26,315,000 for the Property at the time of the taking, which Gyrodyne elected, under New York's eminent domain law, to treat as an advance payment while it pursued its claim for just compensation. The Court of Claims ruled in Gyrodyne's favor in June 2010 when it awarded the company $125,000,000, thereby requiring the State to pay an additional $98,685,000 plus statutory interest of nine percent from the date of taking on November 2, 2005 to the date of payment.
Commenting on the Decision and Order, Stephen V. Maroney, Gyrodyne's President and Chief Executive Officer, stated that "[w]e feel extremely gratified by the Appellate Division's affirmation. Since 2005 when 245 acres of our Flowerfield property were condemned, we have worked diligently to secure just compensation for our shareholders and have consistently expressed confidence in the merits of our case. Though we cannot predict how the State will respond to the Appellate Division's Decision, we will continue to pursue our rights diligently in this case until its final resolution and collection of the award to which Gyrodyne and its shareholders are entitled."
Gyrodyne cannot predict how the State will react to the Appellate Division's Decision procedurally, including whether it will seek leave to file a further appeal. As a result, the amount of a final award and the timing of payment are still unknown at this time.