A Miami-Dade Circuit Court judge has dismissed most of the claims brought by siblings Sean and Nicole Mirmelli in their lawsuit seeking to terminate a 99-year ground lease tied to one of two parcels beneath the Kimpton Surfcomber Hotel in Miami Beach.
Judge Thomas Rebull last week threw out four of five counts from the Mirmellis’ May lawsuit against Chisholm Properties South Beach, led by Robert Balzebre. The dismissed claims included breach of contract, commercial eviction, and slander of title. This decision effectively denies the Mirmellis’ requests to cancel the ground lease and appoint a receiver for management of the parcel at 1731 Collins Avenue, which comprises half of the hotel’s property. Ownership of this land is split evenly between Chisholm and a trust representing the Mirmellis.
Chisholm acquired the three-story hotel for $1.4 million in 2004 and separately assumed the ground lease at 1731 Collins Avenue, which allowed for construction of the Art Deco building completed in 1948. The purchase also included outright ownership of an adjacent parcel at 1717 Collins Avenue.
Joseph Pardo, attorney for Sean and Nicole Mirmelli, said his clients plan to continue fighting: “We believe there was an ongoing breach because the lease restrictions are covenants that run with the land.” He added that they will seek a rehearing “and will appeal if necessary.”
Lawyers Abbey Kaplan and Philippe Lieberman, representing Chisholm Properties South Beach, described the lawsuit as “a frivolous and misguided attempt to unwind a long-standing lease.”
The Mirmellis alleged that Chisholm breached terms of the ground lease by altering building conditions contrary to their agreement. They also claimed Chisholm incurred liens on the property and obtained an unauthorized $20.5 million loan in 2014 secured by both parcels.
Another allegation centered on an estoppel letter used during mortgage proceedings; Nicole Mirmelli stated she did not sign it, though her signature appeared on documents verifying details about the ground lease. In response, Chisholm’s lawyers said: “Our client received the fully executed Estoppel Certificate directly from the Mirmellis,” adding that “a notary testified under oath that he personally witnessed the signing. Any alleged misdeed was attributable to the Mirmellis.”
Judge Rebull ruled that some claims regarding liens and mortgages were blocked by statutes of limitations. He also found that without consent from Chisholm, Sean and Nicole Mirmelli lacked standing to enforce provisions in their shared ground lease.
