Court says developer can sue Long Beach

A ruling by the Appellate Division of the State Supreme Court in Nassau County has paved the way for a developer to move forward with a $50 million lawsuit against the city, which rejected a plan a decade ago for a condominium complex on Shore Road.

On April 17, a panel of four Appellate Division judges unanimously ruled that in 2006, Supreme Court Justice Randy Marber erred in dismissing claims made against the city’s Zoning Board of Appeals by the Haberman Group, a Manhattan-based developer. The Haberman Group is seeking to recoup damages and profits it claims it lost after the board revoked its permits to build three condominium buildings on Shore Road in 2003.

In its suit, the Haberman Group alleges that the zoning board bowed to political pressure from unit owners at the adjacent Sea Pointe Towers, who claimed that their views would be obstructed by the proposed condos.

The appellate court ruled that Haberman’s claims against the zoning board’s chairman, Rocco Morelli — that Morelli conducted a public hearing in a “prejudicial manner” because he did not recuse himself despite the fact that he lived next door to the proposed development — and other city officials were legitimate grounds for a lawsuit.

“Whether a plaintiff can ultimately establish its allegations is not part of the calculus in determining a motion to dismiss,” the judges wrote.

Long Beach Corporation Counsel Corey Klein dismissed the claims of a conflict of interest and said that the city intends to appeal the ruling. “I don’t believe [Haberman] will ever be able to prove their case — there is no merit to the case,” Klein said. “This is an ongoing saga between the city and a cadre of legal teams that the Habermans have put together in order to try to make up legal theories against the city.”