Branford will pay a $3.4 million settlement to end a legal battle of nearly eight years in the Tabor property eminent domain case.

The deal shuts the door on the chance that Branford would have to face an estimated $19.8 million in costs if the U.S. Supreme Court heard and ruled in favor of a pending appeal to overturn a February 2010 Connecticut Supreme Court decision in Branford's favor.

On Oct. 13, the Representative Town Meeting (RTM) voted unanimously to support an appropriation to cover the cost of the $3.4 million settlement. Within minutes of that vote, at special meeting of the Board of Selectmen, Branford's three selectmen voted unanimously to settle two cases titled New England Estates (NEE) LLC v. Town of Branford and one other case in the matter, Town of Branford v. Thomas Santa Barbara Jr., et al.

The exact amount of the settlement is $3,485,000. Due to expenses of more than $2 million already incurred by the town, the increase equals an additional $935,000 expense to Branford taxpayers.

The RTM's vote supported an appropriation increase from $10.9 million—already set aside to cover past Tabor case expenses—to $13.8 million. The appropriation received the unanimous support of the Board of Finance Sept. 27. Branford has already financed approximately $2.5 million of the original appropriation.

The legal battles over the Tabor property began after Branford was accused of wrongfully enforcing eminent domain to take the Tabor property, which NEE had an option to buy. At the time of the eminent domain seizure, the RTM voted unanimously in favor of seizure, citing environmental contamination concerns on the land that would otherwise be developed for housing. In 2007, a lower court awarded NEE $12.4 million (plus $1.5 million in attorney's fees) in support of its claims Branford's reasons for taking the land were false.

In February 2010, Branford's appeal of the decision to the Connecticut Supreme Court brought a reversal of the lower court decision based on findings NEE had no property interest protected by federal law. But wording in the state court's decision, in particular that the town had acted "dishonestly," appeared to give credence to NEE's claims Branford had taken the land wrongfully by violating NEE's civil rights.

In July, NEE attorneys at Hartford law firm Shipman & Goodwin announced NEE would petition the U.S. Supreme Court for a review of the state court's decision.

While saying it is statically unlikely the Supreme Court would take the case, at the Oct. 13 RTM meeting, representatives on both sides of the aisle concurred that, if it were heard, the odds of a reversal would increase significantly. Also taken into consideration was the continuing accrual of interest on payments, as well as the projected costs of going to court. Finch has estimated the added cost of interest and legal fees, compared to the $3.4 million settlement offer, could ultimately cost Branford taxpayers $19.8 million.