A Miami-Dade Circuit Court judge has largely dismissed a lawsuit brought by siblings Sean and Nicole Mirmelli against Chisholm Properties South Beach, the owner of the Kimpton Surfcomber Hotel in Miami Beach. The legal dispute centers on a 99-year ground lease tied to one of two parcels under the hotel.
Judge Thomas Rebull dismissed four out of five counts from the May lawsuit, including breach of contract, commercial eviction, and slander of title. The ruling effectively denies the Mirmellis’ attempt to cancel the ground lease and to have a receiver appointed to manage the parcel at 1731 Collins Avenue. Both Chisholm and the Mirmellis’ trust each own half of this land, which forms part of the Surfcomber property.
Chisholm purchased the three-story hotel for $1.4 million in 2004, assuming the ground lease for 1731 Collins Avenue that allowed construction of the Art Deco building finished in 1948. The transaction also included outright ownership of an adjacent parcel at 1717 Collins Avenue.
In response to the ruling, Joseph Pardo, attorney for Sean and Nicole Mirmelli, said in an emailed statement: “We believe there was an ongoing breach because the lease restrictions are covenants that run with the land.” He added that his clients would seek a rehearing “and will appeal if necessary.”
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 making changes to the building not allowed under its conditions. They also claimed Chisholm obtained an unauthorized $20.5 million loan in 2014 using both parcels as collateral and that liens were placed on the property.
Additionally, they accused Chisholm of submitting mortgage documents containing a forged signature from Nicole Mirmelli on an estoppel letter verifying details about the ground lease. Nicole Mirmelli denied signing this document in an affidavit.
Chisholm’s attorneys disputed these claims: “Our client received the fully executed Estoppel Certificate directly from the Mirmellis,” their joint statement said. “And a notary testified under oath that he personally witnessed the signing. Any alleged misdeed was attributable to the Mirmellis.”
Judge Rebull found that claims related to liens and mortgages were barred by statute of limitations and ruled that without consent from Chisholm, the Mirmellis lacked standing to enforce terms of the ground lease.
