Former One Bal Harbour owner sues partners

Thomas Sullivan claims Arevalo brothers defrauded him on $17.5M loan

Jul.July 23, 2014 09:45 AM

The January sale of much of the One Bal Harbour Resort & Spa seemed to put an end to years of litigation and bankruptcy cases, but a new lawsuit related to the condo-hotel was just filed in Miami-Dade Circuit Court.

Lumber Liquidators Holdings owner Thomas Sullivan, through a company called F9 Investments, sued former business partners Jorge and Juan Arevalo over claims that he is owed about $12 million from a $17.5 million loan. Sullivan and Jorge Arevalo acquired the condo-hotel from bankrupt WCI Communities for nearly $15 million in 2009. According to the suit, Sullivan arranged to have the Arevalos manage the resort, pay back the loan and provide a share of the profits.

Sullivan also claims Jorge Arevalo didn’t reveal his intention to take a $1 million commission from the loan, according to the Daily Business Review. The allegations in Sullivan’s suit mirror accusations made by the condo-hotel’s association in its lawsuit against Arevalo.

The residential condo association of One Bal Harbour ended up as the buyer in the $13.4 million bankruptcy sale of the property’s hotel tower, common areas and nine unsold condos.

Arevalo’s attorney Joseph DeMaria claims Sullivan is simply “deflecting attention” with his suit against his client because the liquidating bankruptcy trustee is pursuing him.

Sullivan “claims he was left in the dark from the management of One Bal Harbour, and that claim is a lie, and I have e-mails and documents to prove it,” DeMaria said. [Daily Business Review]Eric Kalis

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