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July 29, 2010 |
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| December 03, 2009 |
By: Polyana da Costa |
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red DeLuca, founder of the Subway sandwiches empire and whose fortune is estimated to be worth about $1.6 billion, is being sued by a Delray Beach developer for $5 billion.
Anthony Pugliese III filed a lawsuit Thursday in Palm Beach Circuit Court accusing DeLuca of squeezing him out of a $9 billion project south of Orlando.
Pugliese accuses DeLuca of breach of contract, deceptive and unfair trade practices, fraud in the inducement, predatory lending and unjust enrichment.
The suit was filed by famed attorney Willie Gary of Stuart.
DeLuca, a Fort Lauderdale resident, said he had not seen the lawsuit and declined comment.
Pugliese, who had been working on what he calls his dream project — a 41,000-acre green community near Yeehaw Junction — claims DeLuca became a partner in his project in 2005, a year after Pugliese had started negotiating financing for the deal.
He said he first negotiated with iStar for a $140 million loan to begin land acquisition for the project, a development that would be twice as big as Disney World. But after he met DeLuca, who said he was interested in becoming a partner, Pugliese ended talks with lenders because DeLuca said he wanted to obtain his own financing for the deal.
The two met through a mutual friend and banker, said C.K. Hoffler, one of the attorneys representing Pugliese on the deal.
Hoffler said DeLuca led Pugliese to believe the lender was to be Wachovia Bank. Pugliese later found out DeLuca borrowed money from Wachovia and lent it to Pugliese at a higher rate.
“That is deceptive,” she said.
Over the years, DeLuca found ways to “squeeze Pugliese out of the deal,” she said.
Earlier this year, DeLuca told Pugliese he “wanted to take over management of the project or he would sue him,” she said.
Pugliese stepped aside.
“But [DeLuca] underestimated our client’s willingness to fight,” she said.
Polyana da Costa can be reached at (561) 820-2065.
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