Old Westbury to Pay Lubavitch $19 Million, Approve Chabad Center After Decades-Long Legal Battle

by CrownHeights.info

After nearly two decades of legal battles, a major victory has been secured for Chabad-Lubavitch in Old Westbury, New York.

The Incorporated Village of Old Westbury has agreed to pay approximately $19 million in damages and permit the long-delayed construction of a Chabad center, bringing an end to one of the longest-running religious land-use disputes in recent memory.

The case, brought by Lubavitch of Old Westbury and Rabbi Aaron Konikov, dates back to 2008, though efforts to build the Chabad center began even earlier. Over the years, the plaintiffs argued that the village systematically blocked their ability to construct a house of worship through restrictive zoning laws.

At the center of the dispute was the village’s “Places of Worship” (POW) law, which imposed significantly stricter requirements on religious institutions than on comparable secular uses.

In a strongly worded ruling in 2025, a federal judge declared the law “facially invalid under the United States Constitution,” finding that it discriminated against religious exercise.

Court filings revealed stark disparities in how religious uses were treated. Among the restrictions imposed on houses of worship were a 12-acre minimum lot size requirement, severe setback and frontage limitations, height restrictions stricter than those for residential and commercial buildings, and requirements to preserve large portions of land in an undeveloped state.

In one striking example cited by the court, zoning rules allowed certain non-religious uses—such as agricultural features—to be located closer to property lines than a synagogue or house of worship.

The court concluded that the law treated “comparable secular activity more favorably than religious exercise,” a violation of fundamental constitutional protections.

As the case dragged on, the financial impact on the Chabad grew significantly. Court discussions referenced millions in lost donations and earnings, highlighting the real-world toll of the prolonged delays.

With the zoning law struck down and the village facing the prospect of even greater liability, pressure mounted to reach a resolution.

According to available reporting, the newly reached agreement includes $19 million in damages paid to Lubavitch of Old Westbury, approval to move forward with construction of the Chabad center, and an end to years of costly and contentious litigation.

The settlement effectively closes a chapter that a federal judge previously described as an “unacceptably long history” of delay and legal obstruction.

Legal experts say the case could have far-reaching implications for religious institutions across the United States. The ruling reinforces that municipalities cannot impose zoning laws that unfairly burden religious practice, particularly when comparable secular uses are treated more leniently.