The New Jersey Appellate Division has upheld Lakewood Township’s ordinance permitting banquet halls as accessory uses to schools in non-residential zones, upholding a lower court decision and dismissing a lawsuit challenging the measure.

In a ruling released Monday, the court rejected a 17-count lawsuit filed by a local property owner, which alleged procedural violations, conflicts of interest, and inconsistencies with the township’s master plan.

The appellate panel agreed with the trial court that the ordinance was not arbitrary, capricious, or unreasonable, and found it aligned with Lakewood’s planning policies. Judges also dismissed claims that a township official had a disqualifying conflict of interest and ruled that limits on public comment did not violate the state’s Open Public Meetings Act.

The ordinance, adopted in 2022, formalized a longstanding practice of allowing banquet halls to operate alongside schools in non-residential areas, provided parking requirements are met.

With the ruling, the ordinance remains in effect and simcha halls in schools in non-residential areas can continue operations.