Opinion ID: 2185419
Heading Depth: 1
Heading Rank: 7

Heading: effect of reliance

Text: In an extension of the position it took in the preceding part IV(2), York Cold Storage also urges that the district court erred in reversing the variance because York Cold Storage had, in good faith, detrimentally relied on the grant. In attempting to distinguish its situation from that presented in Omaha Fish & Wildlife v. Community Refuse, 213 Neb. 234, 329 N.W.2d 335 (1983), York Cold Storage argues that as it had made expenditures in constructing the building in good faith reliance on the variance, the variance cannot now be revoked. Relying on A.C. Nelsen Enterprises, Inc. v. Cook, 188 Neb. 184, 195 N.W.2d 759 (1972), Omaha Fish & Wildlife suggests that under certain circumstances the expenditure of funds in good faith reliance on an improper zoning may give rise to a vested right for a certain use of the improperly zoned property. Nonetheless, the Omaha Fish & Wildlife court found that the expenditures at issue had not been made in good faith because at the time they were made, the defendants were aware that the correctness of the zoning was in question. The Nelsen court allowed the grantee of a certificate of occupancy the use of the property in accordance with a permit issued but later withdrawn by the city on the ground it had made an error. In that circumstance, the Nelsen court held that the grantee's expenditures in good faith reliance upon the certificate prevented the city from later withdrawing it. Here, York Cold Storage knew for almost a week before it began construction that the variance under which it was proceeding faced a court challenge. Any expenditures it made under that circumstance cannot be said to have been made in good faith reliance on the variance. In the words of the district court, Economic might under a guise of claimed good faith detrimental reliance cannot replace or change due process of law. See, also, Egan v. Catholic Bishop, 219 Neb. 365, 363 N.W.2d 380 (1985) (purchaser who knew of construction on adjacent property waived any right he may have had to enforce restriction prohibiting such construction).