Judge dismisses Bath Club lawsuit against association and two unit owners accused of conspiring against Peebles Corp.

The developer had alleged owners attempted a hostile takeover bid by trying to drive down The Bath Club’s market value

Miami /
Aug.August 27, 2019 08:45 AM
Don Peebles and the Bath Club (Credit: Zilbert)

Don Peebles and the Bath Club (Credit: Zilbert)

In a blow to Peebles Corp., a Miami-Dade judge tossed out a lawsuit brought against two high-profile unit owners and the association at the Bath Club, the historic Miami Beach private club the developer acquired and redeveloped in the early 2000s.

Miami Dade Circuit Judge Beatrice Butchko last month ruled in favor of defendants Mark Penn, Thomas Ireland, the condo and maintenance associations for The Residences at The Bath Club and Rubicon Holdings, granting their request to dismiss the lawsuit filed by Bath Club Entertainment, a management company controlled by Peebles Corp., led by Don Peebles.

Eleanor Barnett, a partner at Waldman Barnett representing Bath Club Entertainment, said her client intends to refile an amended complaint by a Sept. 4 deadline set by Butchko. “The judge wanted more details on certain allegations about the activities we allege are wrongful,” Barnett said. “We will provide them to her and we are confident the amended lawsuit will proceed.”

Todd Legon, a lawyer for Penn and Ireland, said Bath Club Entertainment will likely lose again. “We are certainly pleased and gratified the court granted our motion to dismiss,” Legon said. “We have always believed this complaint has no merit whatsoever.”

Representatives for Rubicon and the attorney for the associations did not respond to messages seeking comment.

According to the complaint, Penn, a former Clinton administration strategist who now manages a private equity firm, and Thomas Ireland, chairman and CEO of commercial real estate firm the Ireland Companies, allegedly conspired with one another to sabotage Peebles Corp.’s operation of The Bath Club, hoping to buy the former members-only club at a steep discount.

The suit alleges that Penn and Ireland, while serving on the association’s board of directors, spearheaded the effort to disrupt and undermine Peebles’ management of the 5-acre property at 5937 Collins Avenue that includes a 1930s clubhouse, a fitness center, 107 condos, six oceanfront villas and 60 cabanas.

According to the suit, while Peebles expected the club to fetch more than $25 million on the market, Penn and Ireland allegedly conspired with Rubicon to drive down the market value. Peebles rejected one $10 million offer made by Penn and Ireland, and another for the same amount made by Rubicon.

Peebles and the association have filed dueling lawsuits against each other several times between 2007 and 2012. In a previous interview, Legon said the latest complaint by Peebles was an attempt to avoid the financial impact of a court order that required the developer to fulfill food, beverage and cabana obligations to unit owners.


Related Articles

arrow_forward_ios
An aerial of the proposed development site and warehouse with Sergio Rok and Jimmy Tate
Neighbor sues to short-circuit Jimmy Tate and Sergio Rok’s no-bid North Miami project
Neighbor sues to short-circuit Jimmy Tate and Sergio Rok’s no-bid North Miami project
Fuse Group Investment CEO Eyal Peretz and attorney Michael Ehrenstein (Fuse, Ehrenstein Sager, Twitter via GUT Miami)
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
The Avenue Apartments at 6220 Reese Road in Davie (Photo via Avenue Davie)
Boardwalk Properties sued for alleged racial discrimination
Boardwalk Properties sued for alleged racial discrimination
3050 Coral Springs Drive in Coral Springs; 1361 Southeast Fourth Street in Deerfield Beach and clips from the complaints. (Google Maps, District Court of Southern Florida)
SEC charges South Floridians in alleged $9M real estate scam
SEC charges South Floridians in alleged $9M real estate scam
HFZ’s Ziel Feldman with the Shore Club (Getty, Facebook via Shore Club)
HFZ Capital off the hook for $6M in failed Shore Club South Beach deal
HFZ Capital off the hook for $6M in failed Shore Club South Beach deal
(The Markers Grove Isle)
Grove Isle legal battle ending, as developer rebrands planned waterfront condo project
Grove Isle legal battle ending, as developer rebrands planned waterfront condo project
The Clevelander South Beach (Getty)
Clevelander wins lawsuit against Miami Beach over alcohol rollback
Clevelander wins lawsuit against Miami Beach over alcohol rollback
(Getty)
Weston man pleads guilty in Vermont Jay Peak EB-5 biomedical research case
Weston man pleads guilty in Vermont Jay Peak EB-5 biomedical research case
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...