$50 Million Coming Due: Long Beach Loses Appeal In Haberman Case

Late last week, the New York State Appellate Court ruled against the City of Long Beach in the longstanding Haberman case, meaning that, without a successful appeal, the city could be forced to pay more than $50 million in penalties. The lawsuit is one of the longest ongoing land-use cases in the country.

The case has been going on since 2003 and began when the city's zoning board revoked the permits for the development firm Sinclair Haberman to build condos on Shore Road. The project itself dates back to the 1980s. Haberman alleges that the city bowed to pressure from neighbors in the area who did not want him to build another apartment building that would block their view, even though he already had the permits to do so.

Litigation had been going back and forth. In 2015, the courts ruled that the city did not timely respond to the suit against it and defaulted judgement to Haberman. The city appealed, but the Appellate Court just upheld the previous decision.

That means that the case can now go to trial, where a judge will rule on exactly how much the city has to pay. The city can try to appeal, but it would have to get leave to do so from the Appellate Court, which is difficult to do, especially because the court just ruled against the city.

"This litigation has been going on for 15 years as a result of issues dating back to the 1980s," the city said in a statement. "This is a setback, however, the city will continue to defend its position vigorously during the next phase of the litigation."

Haberman is seeking more than $50 million in damages from the city, plus interest and legal fees.

"Both of New York State’s highest courts — the New York Court of Appeals and the Appellate Division, Second Department — have consistently ruled against the City of Long Beach’s efforts to dismiss The Haberman Group’s lawsuit for damages," said Scott Mollen, a partner at Herrick Feinstein LLP and one of the attorneys representing the Haberman Group. "Besides exposing the taxpayers to such a large damage claim, the city is continuing to devote substantial resources to this litigation, because it has hired two outside law firms to represent it in the litigation."

The case now proceeds to trial. It's unclear when that will begin, and it could also be a lengthy process.

"Unfortunately, irresponsible public officials have brought the taxpayers large legal bills and significant liability," Mollen said. "These decisions affirm that in this country, courts will not permit citizens to be victimized by government officials who abuse their positions and power."

Photo: Patch