East Hampton Town sues Montauk's Barlume Beach resort

The Town of East Hampton sued a waterfront resort in Montauk this week, alleging its restaurant operated at more than six times the approved seating capacity.

The lawsuit, filed Tuesday in the state Supreme Court, alleges the owner and operators of Barlume Beach on Lake Montauk “engaged in an unlawful expansion and intensification” of its restaurant in violation of town code and site plan approvals.

The town is seeking a court order requiring the defendants to reduce seating to approved levels, remove unapproved structures and restore the property to plans approved by the town. The suit also seeks civil penalties and a permanent injunction barring further expansion without the town's approval.

Brian Matthews, an attorney for the defendants, said the town’s complaints are based on “a misunderstanding or misreading about how the property is used and what's allowed and what the town has the authority to regulate.”

“We're denying what the town is alleging constitute violations of the town code,” Matthews said in an interview.

According to the lawsuit, the property’s 2006 site plan allows a maximum of 75 seats for indoor and outdoor dining. But town officials observed dramatically higher numbers recently — including as many as 508 "seats" on June 10, the lawsuit states.

That count exceeds what the site’s septic system and on-site parking were designed to handle, according to the town.

Last month, the town issued 12 appearance tickets to 435 Operations MTK LLC and 435 East Lake Dr LLC in connection with inspections at the Barlume Beach property. The lawsuit claims the defendants have continued to operate without remedying the violations.

The East Hampton Town Board authorized legal action against the property’s owner and operators at its June 16 meeting.

The lawsuit alleges the resort maintained seating and outdoor dining areas that were not approved. The resort also built and used an outdoor bar without approvals, operated without a required certificate of occupancy and failed to obtain Architectural Review Board approvals, according to the lawsuit.

The town argues that increased capacity at the resort could strain the site’s septic system, which is within about 40 feet of Lake Montauk and described in the complaint as a “sensitive water resource.” While the Suffolk County Department of Health Services regulates septic systems, the town said the increased seating raises “legitimate concerns” about the impact of wastewater generation on the environment.

The original restaurant at the Barlume Beach property was destroyed by a fire in 2023, a day before a French bistro was set to open there. The lawsuit says the property was permitted to be rebuilt “in place and kind,” but it did not receive approvals for an expansion.

The resort had submitted an application to expand, but the town’s lawsuit says the application is incomplete and does not accurately reflect current operations.

A judge did not immediately grant the town’s request to stop Barlume Beach from operating with its alleged expansion on Wednesday, Matthews noted. The parties are due back in court on Aug. 12, according to online filings.

“We're continuing to engage with the town to make sure their concerns are addressed,” Matthews said. “This is not a situation where you have an operator just thumbing their nose and turning their back on the town.”

Barlume Beach, which includes a 19-room hotel, restaurant and day-to-night lounge, opened in May, Newsday has reported. The property also includes marina slips and offers boat charters.