A rural village and a town to face a $25 million lawsuit as they banned Hasidic Jews from building housing and opening a bath for ritual immersion and purification.

US District judge Katherine Forrest said discrimination claims can proceed against the village of Bloomingburg and the Town of Mamakating, in Sullivan County.

The judge allowed plaintiff Sullivan Farms II Inc. to proceed with claims that the village obstructed the completion of a housing development project known as Chestnut Ridge.

She permitted Malka Rosenbaum and Winterton Properties to pursue claims the town and its zoning board blocked formerly used as a day spa and a residence into a mikvah, a bath used by Hasidic Jews.

The judge said Sulllivan Farms II has given detailed and legally sufficient allegations that could result in findings that the village and some leaders discriminated against Hasidic Jews.

The judge said Rosenbaum and Winterton Properties could face claims that a stop work order and the actions of the town's zoning board aimed to prevent the plaintiffs from following their religion and associating with others to do the same.

Michael Zarin, a village lawyer said, "This lawsuit is nothing more than an attempt by these developers to intimidate this small municipality. The court has now dismissed most of their claims, and we are confident that at the end of the day the village will prevail".

Bloomingburg Mayor Frank Girardi said in a statement that the village will carry on treating all residents fairly.

Attorney Brian Sokoloff said in an email that the town pleased the court 'gutted' most of the plaintiff's case and dismissed the town supervisor from it. The town's remaining case amounts to a run of the mill zoning dispute, he said.