N.J. Town Loses $3M In Eminent Domain Battle

Bloomfield, NJ – Bloomfield may have to fork out almost $3 million to a local real estate development company after seizing its property in 2012 via eminent domain.

On Friday, an Essex County jury awarded $2.9 million to the Bloomfield Daval Corporation - a family business led by Howard Haberman – as compensation for 14 Lackawanna Place in Bloomfield, otherwise known as Block 220.

According to attorneys for the corporation, the jury’s award was almost seven times more than the $440,000 value that the town’s appraiser had placed on the property.

The property encompasses about two-thirds of an acre and includes a historic train station building constructed in 1912.

After purchasing the property from the Erie-Lackawanna Railroad in 1964, Haberman planned to build 34 apartments and 12,000 square feet of new commercial space, his attorneys stated.

However, the town condemned Haberman’s property via eminent domain in 2012. The resulting litigation took four years to get to trial.

“The Haberman family had been eager to be part of the revitalization of downtown Bloomfield for many years and was promised an opportunity to participate in the town’s redevelopment,” stated Haberman’s attorney, Anthony DellaPelle of Morristown-based McKirdy Riskin.

“However, since the town changed its mind and took the property via eminent domain, the family was left with only one option – to seek a fair price for the property it had owned for 50 years,” DellaPelle added.

• See related article: Developer Says Condemnation Not the Answer

‘ACTING IN GOOD FAITH’

Town officials have stated that an appeal to last week’s decision may be in the works.

"The township disagrees with this ruling and is reviewing its legal options and exploring the possibility of appealing the decision,” a spokesman for Bloomfield Mayor Michael Venezia told NJ.com.

Township officials previously stated that the municipality has "acted in good faith in its dealings" with Haberman.

In 2012, a NJ Superior Court judge ruled that the township had eminent domain rights over the property.

"Bloomfield's stated purpose for the condemnation of the train station is to provide safe and convenient public access to the NJ Transit platforms," wrote Judge Patricia Costello in court documents. "Nothing in the record demonstrates a motive to the contrary.”

"The utility of the condemnation is especially evident when considering the train station's current decrepit and unused state and its proximity to the train tracks," Costello wrote.

• See related article: Judge Rules Eminent Domain in Bloomfield's Lackawanna Station Case

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