Family matriarch Belinda Meruelo was celebrating her 88th birthday at an office party two years ago when she was allegedly lured into a closed-door meeting and “manipulated and tricked” into signing away an interest in the oceanfront Deauville Beach Resort property, according to a scathing lawsuit filed this week.
David Martin’s TMG 67 Communities acquired a 25 percent stake in the Deauville, a 3.8-acre oceanfront property at 6701 Collins Avenue in Miami Beach, in April 2024. That deal is at the center of the lawsuit, which alleges fraud, breach of fiduciary duty, rescission of the land contract and co-tenancy agreement, cancellation of the deed and civil conspiracy.
The Deauville was a historic resort that fell into disrepair under the Meruelos’ control, ultimately forcing its court-ordered demolition in late 2022. Martin and the Meruelo family entered into a deal where Martin would lead the redevelopment of the property into a luxury condo project. This arrangement followed a failed deal between the family and billionaire developer Steve Ross.
On Monday, Deauville Associates sued developer David Martin, TMG 67 Communities LLC, Terra Acquisitions Florida, Richard Meruelo, Stephen Meruelo, Anthony Meruelo, additional companies and two other individuals: Miguel Echemendia and attorney Louis Zaretsky.
The deal struck at Belinda’s party represented “an absurd 90 percent discount” off the market value of $500 million, according to the lawsuit, which alleges that Martin “was after a bargain.”
Who controls Deauville Associates might also be a point of contention. Attorney Jose M. Chanfrau IV, who said he represents Belinda Meruelo and Deauville Associates, told The Real Deal that the lawsuit was not authorized by the company.
“This lawsuit was prompted by two of Mrs. Meruelo’s grandchildren, who are seeking to leverage their position to secure a monetary payment to which they are not entitled. She is very disappointed in her granddaughters,” according to Chanfrau’s statement. “The company rejects any claim that the 2024 transaction with Mr. Martin was unauthorized. We expect this lawsuit to be dismissed once the Court understands the true facts.”
Terra has been working on plans for the luxury project over the past two years. Last summer, the partnership secured approval from the Miami Beach City Commission for two amendments to the North Beach overlay district, as well as a development agreement and settlement agreement.
“We are aware of the legal filing, and the parties are engaged in ongoing discussions aimed at resolving the matter and advancing this long-awaited development that will help enliven the North Beach neighborhood through significant private investment,” a statement from Terra’s attorney, John Shubin, reads.
Deauville Associates claims the defendants deceived and exploited Belinda, who is described as a vulnerable, elderly woman who had begun experiencing memory loss when the deal with Martin was struck. Belinda owned and managed the hotel with her other son, Homero.
After Homero’s death in November 2022, Martin and Richard targeted Belinda, according to the lawsuit.
The complaint seeks more than $100 million in damages, in part for the allegedly “[deceptive] and callous exploitation” of Belinda Meruelo. Attorneys Luis E. Suarez and Mark J. Heise of the Coral Gables law firm Heise Suarez Meville filed the complaint on behalf of Deauville Associates.