The two-year dispute between Gales Ferry residents and the developer seeking to level the north side of Mount Decatur took a new turn this week when the company sued the city’s Planning and Zoning Commission for rejecting the special permit. Gales Ferry Intermodal, owned by Massachusetts-based Jay Cashman Inc., filed an appeal on Monday at state Superior Court in New London, asking it to overturn the commission’s rejection. The company argued that it had demonstrated regulatory compliance, stressing that there was no “substantial evidence” to support the rejection. The project was pitched as a revenue generator for the town and had Ledyard Mayor Fred Allyn III’s support, but it garnered strong opposition among many Gales Ferry residents. The company accused the commission of making speculative and illegal assumptions instead of considering that the developer would follow the proposed development plan. The lawsuit mentioned that Eric Treaster, a member of the Ledyard Zoning Appeals Board, testified against the application during the hearings and coordinated with members of the Gales Ferry District to oppose GFI’s proposal. It argued that this violated Connecticut’s general statutes and unfairly influenced the proceedings.