DAMARISCOTTA – In one of the largest civil penalties in Maine history, a campground owner has been ordered to pay $8.4 million and move 18 cabins for violating Damariscotta’s shoreland zoning ordinance.

“I’ve never heard of fine in a case like this that comes even close to that,” said Assistant Attorney General Gerald D. Reid. “We never expected to see a judgment of this size because we always expected to see this case settled.”

The ruling by Superior Court Justice Donald H. Marden marks the latest development in a dispute involving the owners of Lake Pemaquid Camping on Pemaquid Pond, the state Department of Environmental Protection and the town.

A lawyer for the campground said Tuesday the owners will appeal the ruling to the Maine Supreme Judicial Court.

The fine and cabin removal will be suspended until the Law Court rules on the matter early next year.

The dispute began in 1984, but heated up in April 1998 when DEP filed a complaint against Lake Pemaquid Inc., which is owned by local attorney Clayton N. Howard.

DEP and the state Attorney General’s Office accused the campground owner of violating the town’s shoreland zoning laws by building 21 cabins between 1984 and 1991 within the zone’s 100-foot setback area.

Howard argued that the cabins were grandfathered by a 1985 zoning board of appeals decision that gave Howard permission to build three lakeside cabins.

After a four-day trial last November in Kennebec County, Marden issued two rulings. One in June said 18 cabins needed to be removed and the other, issued in July, said the state was entitled to collect $8.4 million.

“It should go without saying that the court is concerned from a practical point of view that the law provides a penalty of not less than $100 for each day of the violation,” Marden wrote. “However, the law is clear that this court is without discretion to assess civil penalties less than the minimum specified.”

In his ruling, Marden says 18 cabins were in violation of shoreland zoning regulations for a total of 84,724 days, amounting to a fine of $8.4 million.

Marden also ordered Lake Pemaquid Inc. to reimburse the state for attorney’s fees in the amount of $44,332.

Reid said the cabins’ proximity to the pond allowed the campground to charge higher rental fees. By keeping the cabins inside the 100-foot setback, Reid said the campground generated more than $700,000 in revenues it otherwise would not have been able to collect.

“That’s a good motive for fighting hard to keep these cabins at the water’s edge,” Reid said.

Howard said Marden’s decision could hurt business owners around Maine.

“Every business in the state will be placed in jeopardy if the DEP can challenge a local decision that was made 15 years ago,” Howard said.