City to appeal $50 million lawsuit

Will fight judge’s default ruling in Haberman case

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A $50 million lawsuit against the city took another twist last month when a Nassau County State Supreme Court judge ruled that the city had failed to respond to a developer’s amended claim for damages.

On March 27, Acting State Supreme Court Justice James McCormack granted a motion for a default judgment made by the development firm Sinclair Haberman, which is seeking to recoup damages and profits it claims it lost after the city’s Zoning Board of Appeals revoked its permits to build three condominium buildings on Shore Road in 2003. The project dates back to the 1980s.

The case has been wending its way through the courts for more than a decade. Haberman alleges that the zoning board bowed to pressure from unit owners at Sea Pointe Towers, at 360 Shore Road — operated by the Xander Corporation and designed to be part of a four-tower complex, between Lincoln and Monroe boulevards — who claimed that their views would be obstructed by the proposed condos.

Permits to build the remaining three towers were issued in the late 1980s, but the project languished for years amid various disputes with the city. Haberman was prepared to construct a second building in 2003 — Sea Pointe Towers II — but the Xander Corporation petitioned the board to revoke the permit. Haberman is also suing the zoning board, the Xander Corporation and several city officials.

McCormack ordered a July conference, where an inquest will be scheduled to determine the damages. “The impact of the ruling … clears the way for the Habermans to pursue the money damage claim against the City of Long Beach,” said Scott Mollen, an attorney for Haberman. “And the Habermans said they believe the damages are in excess of $50 million, which is really not surprising given that the city has engaged in wrongful conduct since the 1980s to obstruct or undermine the Habermans’ right to develop their property.”

The city took issue with McCormack’s ruling, arguing that it was involved in lengthy mediation with Haberman in 2012 in an attempt to settle the case, and that both parties had agreed to adjourn the motion for a default judgment. The city said it intends to appeal.

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