In the latest development in a 24-year legal fight over the value of two parcels on Middle Country Road in Brookhaven Town, a state appellate court ruled last month that the town owes a Great Neck investor compensation for the land, legal fees and decades of interest.

In a decision issued Feb. 21, the state appellate court upheld a prior ruling that Brookhaven owed former property owner Parviz Noghrey $824,000 for losses from his devalued investment in the tract known as Diamond Plaza. When fees and interest are added, Noghrey's lawyer said Monday, the final amount owed could be in the millions.

The appellate court also sent Noghrey's lawsuit over a second parcel, known as Liberty Plaza, back to lower court for further trial.

Noghrey bought the two parcels in 1985 with the intent of building shopping centers. At the time, the area was zoned for business, but Brookhaven enacted a master plan to curb development while Noghrey's building plans were pending. In 1989, the town changed the zoning on the parcels to residential, and Noghrey sued the town for what he said was loss of property value.

An attorney for Noghrey said while the appellate court's decision was welcome, his client was likely to face more legal hurdles in the fight.

"Yes, he's very happy that finally the appeals court has basically recognized his right," lawyer Stephan Gleich of Great Neck said. "But of course he's saddened by the fact that . . . they have unlimited funds to battle him. It's a 'go fight city hall' kind of situation. He probably knows an intelligent solution will not occur and he will probably be faced with many more years of litigation."

A spokesman for Brookhaven said the town is considering its next move.

"The town is reviewing the decision and its options to appeal or reargue. We believe the Appellate Division's decision did not follow precedent that makes it clear that no constitutional violation occurred in this case," said Jack Krieger, Brookhaven Town's public information officer. "We contemplate further legal proceedings to protect the Town and its residents."

Noghrey could not be reached for comment Monday.

Gleich said the total damages, legal fees and interest from the long court fight could top $8 million -- a serious amount for Brookhaven, which has been struggling financially in the wake of decreased revenue.

The town has said it is considering restructuring and/or privatizing a host of town departments and public services to help close a gaping budget hole that could be $6 million to $10 million in 2013 if no action is taken this year.

Gleich said the town has had "multiple" opportunities to settle the case.

"They've just continued this course of action. They just keep increasing their liability," he said. "Sooner or later it will appear the taxpayers will have to foot the bill."

NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island. Credit: Brian Jingleski, Rick Kopstein, Newsday / A.J. Singh, Anthony Florio, Randee Daddona, Newsday / Kendall Rodriguez,

Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.

NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island. Credit: Brian Jingleski, Rick Kopstein, Newsday / A.J. Singh, Anthony Florio, Randee Daddona, Newsday / Kendall Rodriguez,

Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.

4th OF JULY

25¢

for 6 MONTHS

Choose your deal >>

Cancel anytime - New subscribers only