Court sides with Oyster Bay in shellfish case

Oyster Bay had no obligation to renew its lease with the company that had exclusive rights to harvest shellfish in two harbors spanning 1,400 acres, a state judge has ruled, ending a yearslong dispute.

Tuesday's decision from Nassau State Supreme Court Justice Gregg Roth also said the company, Frank M. Flower & Sons, had no rights to the remaining oysters and clams in parts of Cold Spring and Oyster Bay harbors. The decision capped the latest move in a bitter court battle that pitted the town against the shellfishing company, which had a 30-year agreement.

After the town sued Frank M. Flower & Sons in 2023 for allegedly breaking the terms of their lease, the company countersued. That motion sought to force the town to renew the lease and pay the company for the oysters and clams resting on the bay bottom. The nine-page order denied those claims. 

The company “cannot argue that anything was taken from them when they were allowed to continue to take from the underwater lands,” Roth wrote. “A reading of the Town Code makes it clear that the Town was not required to renew the lease.”

James Cammarata, an attorney for Frank M. Flower & Sons, said in a phone interview the lease makes it clear “that the product on the bottom belongs to my client.” He said the company plans to appeal.

Oyster Bay Supervisor Joseph Saladino said in a statement that his administration “is firmly committed to protecting Oyster Bay Harbor and restoring its once-thriving shellfish population.”

“We will never allow any company to fully deplete our natural resources,” Saladino said. “The harbor belongs to the people — and its health is our priority.”

In 1994, Frank M. Flower & Sons signed a 30-year lease with the town that gave it exclusive access to underwater land in both harbors. The lease, which expired Sept. 30, required the company to seed new shellfish as it harvested mature clams and oysters. Frank M. Flower & Sons operated a commercial hatchery to supply the harbors.

The company stopped seeding the area in 2020 as officials grew concerned the town would not renew the lease. Frank M. Flower & Sons said it began making payments to the town in 2021 in lieu of providing 1 million seeds to the harbors annually. The company denied violating the lease.

Roth, in his decision, said the court understands why Frank M. Flower & Sons stopped seeding the harbors “but sees no legal justification for doing so.”

In 2023, Oyster Bay sued the shellfishing company and attempted to end the lease early, but a judge denied the request. 

Frank M. Flower & Sons had argued the town violated the 1994 lease by "failing to negotiate in good faith" toward a renewal, according to the decision. But Roth said the original lease had "no requirement" for the town to either negotiate or sign a new pact with the company.

After the lease expired, the town instituted a shellfishing moratorium on the lands covered by the former agreement, Newsday has reported. The town is considering plans to build and operate a new shellfish hatchery that would produce 100 million clams and oyster seeds annually. 

Bill Painter, president of the North Oyster Bay Baymen's Association, said he expects the formerly leased harbors to be divided into sanctuary and public fishing grounds.

“We can move forward with making the harbor better now,” Painter said in a phone interview. “Hopefully, with the help of the hatchery and other programs, we can try to give a jump start to Mother Nature.”

CORRECTION: An earlier version of this story misstated a financial arrangement between Frank M. Flower & Sons and the Town of Oyster Bay.

By Joseph Ostapiuk

joseph.ostapiuk@newsday.com@OstapiukJ