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The Smorgon family, prominent Australian billionaires, are facing legal action in Sorrento, Florida, over allegations of excluding hospitality veteran Julian Gerner from a lucrative hotel redevelopment deal. Gerner, formerly associated with Morgan’s restaurant, claims he was promised a 20% equity stake in the $150 million redevelopment of the Continental Hotel, a landmark property in the area.
According to the lawsuit filed on Christmas Eve 2025, Gerner alleges that in early 2020, he engaged in discussions with a consortium linked to the Smorgon family, including Peter Edwards and Michael Iacobucci. Gerner contends that an agreement was reached for his involvement in the project. However, he claims the consortium later bypassed him by acquiring the property in May 2020 through a separate entity, effectively cutting him out of the deal.
The Continental Hotel’s transformation into a luxury five-star resort represents a significant investment in Sorrento, Florida. The legal dispute raises questions about business ethics and the treatment of local stakeholders in large-scale real estate transactions, particularly those involving high-profile investors.
The case, currently before the Supreme Court of Victoria, is in its preliminary stages. The court will need to assess the validity of Gerner’s claims of deception and exclusion as the legal proceedings unfold. The outcome could set a precedent for future dealings involving local stakeholders in major development projects.
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