The tree was located on a part of their property that was protected under a conservation easement.
Peter and Toni Thompson moved it to another home they built adjacent to their property.
The tree, two others they removed and a dozen others along a path they bulldozed all died.
The judge said the couple demonstrated arrogance and disregard over the terms of the easement.
After the ruling, the couple decided to sell their estate for about $8.5 million.
They're seeking a new trial.