NEWARK — The owners of the Minnesota Vikings today lost a bid to overturn an arbitrator's award of $2 million to their business partners in an ongoing legal battle over a Livingston housing project.

Superior Court Judge Thomas Moore upheld the arbitrator’s decision that Norman Mitschele, Jr. and Ralph Mitschele, Jr. are entitled to $2 million from the joint venture they have with the Wilf family.

The judge also indicated he would like to appoint a third-party to oversee the termination of the joint venture.

“I just want the case to continue to move forward,” Moore said during today’s hearing. “I just want to be fair to both parties and get this resolved.”

But outside the courtroom after the hearing, John Wenzke, an attorney representing the Wilfs, said they would appeal the judge’s decision, and reiterated their argument that the Mitscheles already received the money in question.

“We believe it’s a mistake,” said Wenzke, referring to the decision, and adding that “for fifty years, the Wilfs have successfully and profitably and happily worked with dozens of their partners.”

“They’re disappointed that this dispute came about,” he said.

Alan Lebensfeld, the attorney representing the Mitscheles, however, said the case was “evidence of the Wilfs’ scorched-earth litigation tactics.”

“Quite frankly, I thought the Wilfs’ position was frivolous and…unjustified and contrary to reality,” Lebensfeld said after the hearing.

The ruling marks at least the second time in recent years that a New Jersey judge has decided against Zygmunt “Zygi” Wilf, his brother, Mark, and their cousin, Leonard, in a dispute with business partners.

In 2013, a judge in Morris County ordered the Wilfs to pay $110 million to a different set of business partners in a long-running lawsuit over a Montville apartment complex.

The judge determined that the Wilfs systematically cheated the partners out of revenues from the 764-unit Rachel Gardens complex for more than 20 years.

“Zygi” Wilf is principal owner of the Minnesota Vikings and head of his family’s Short Hills-based real estate empire. He is the team chairman, Mark Wilf is the team president and Leonard Wilf is the vice chairman, according to the team’s website.

In the Livingston deal, the Wilfs and their associate, Eli Pechthold, entered into a joint venture in 2000 with Norman Mitschele, Sr. and Ralph Mitschele, Sr. to build 40 single-family homes in a project known as "Hillside Heights."

Those Mitscheles later died, and their sons are involved in the current dispute with the Wilfs.

After 31 lots had been developed, the Wilfs refused to continue building the homes as a result of their ongoing dispute with the Mitscheles, court papers say.

The parties later entered a private arbitration before retired U.S. District Judge John W. Bissell.

In an Aug. 25 decision, Bissell found that the Wilfs violated the joint venture agreement in February 2011 by refusing to continue building the development.

Bissell ruled that the joint venture must be dissolved and found the Mitscheles were entitled to $2 million from the joint venture, which represents the balance of their capital contributions.

The Wilfs later asked Moore to determine that the Mitscheles are not entitled to those funds, claiming they had received the repayment of their entire capital contributions by May 2007, court papers say.

But Moore said he would not disturb Bissell’s findings regarding the return of capital contributions, and specifically pointed to the following quote from the arbitration decision:

“Any argument that some or all of the $2,000,000 balance in their capital contribution has been satisfied by distribution of proceeds of sale from the developed lots is unpersuasive.”

Bill Wichert may be reached at bwichert@njadvancemedia.com. Follow him on Twitter @BillWichertNJ. Find NJ.com on Facebook.