Former agent of John's Island Real Estate sues owner Robert Gibb for RICO, antitrust

Melissa E. Holsman, Treasure Coast Newspapers
·5 min read

INDIAN RIVER SHORES – A lawsuit filed by a former employee at John’s Island Real Estate accuses its owner Robert M. Gibb of using his influence over the tony beachside community’s housing market to ruin the career of a now-rival broker, court records show.

Real estate agent Michael Merrill claims in an antitrust lawsuit filed in July and amended on Feb. 7, that after Gibb terminated him in 2022, his former boss and mentor with John’s Island Real Estate undertook a series of bad acts to damage Merrill’s career at a competitor firm, Douglas Elliman Real Estate.

“Through pressure, threat, and retaliation, defendants (Gibb and John’s Island Real Estate) have attempted to eliminate (Merrill’s) ability to conduct business within John’s Island and Indian River County, Florida, all together,” the suit alleges.

John’s Island is an exclusive 1,650-acre barrier island enclave within the town of Indian River Shores, just north of Vero Beach, in Indian River County.

Merrill’s 21-page complaint further claims Gibb “verbally reprimanded, chastised, intimidated, and financially punished individuals” seeking to buy or sell homes on John’s Island who chose to work with Merrill.

Michael Merrill, far right, with his wife Aurelija Merrill, left, and their two boys, Jack and Hudson.
Michael Merrill, far right, with his wife Aurelija Merrill, left, and their two boys, Jack and Hudson.

“This was done by disrupting their businesses, precluding their membership with John’s Island Club, causing them financial loss, and damaging their own good standing within the community,” the lawsuit claims.

Merrill’s attorney Matthew M. Thomas, recently declined to discuss possible money damages being sought, but a cover sheet with the suit shows the amount of the claims exceed “$100,000.”

In rejecting the suit’s claims, Gibb’s lawyer Lewis “Wil” Murphy Jr., insisted no one at John’s Island Real Estate has tried to harm Merrill’s real estate career.

“They have to prove all of these allegations,” he said. “We don't believe they can.”

Gibb, 79, who has owned John’s Island Real Estate since 1999, is scheduled to sit for a deposition on March 5, records show.

According to the John’s Island Club website, amenities within the “very private, family-oriented club community” include three 18-hole golf courses, 17 clay tennis courts, pickleball and squash courts, a fitness center and more than 3 miles of private beaches.

John’s Island gradually expanded into 1,650 acres that includes 3 miles of beachfront. The John's Island Club has about 1,300 memberships and almost 500 residences.
John’s Island gradually expanded into 1,650 acres that includes 3 miles of beachfront. The John's Island Club has about 1,300 memberships and almost 500 residences.

‘Against the wall’

Merrill’s complaint accuses Gibb and John’s Island Real Estate of conspiracy, tortious interference, and violating Florida’s Rico Act, the Antitrust Act, and Deceptive and Unfair Practices Act, filings show.

Attorney Thomas recently said they turned to the courts for relief only after repeated attempts – including sending Gibb a Feb. 18, 2023 cease-and-desist letter - failed to stop an “aggressive campaign” to harm Merrill’s reputation and livelihood.

“Michael kind of felt like his back was against the wall based on what was going on around him,” Thomas said. “If there were only one or two (incidents) I don't know that Michael would have felt compelled to move forward with this lawsuit.”

During his 10 years working for Gibb, Merrill became one of the firm’s top-grossing real estate agents, Thomas said, reaching as high as the “top 5%” earners in the county.

Merrill, who’s expected to be deposed Feb. 27, said for the first seven years, he and Gibb often talked about Merrill one day buying John’s Island Real Estate.

“Those early discussions were fortified with more discussions over the years,” Merrill recalled.

But those talks ended, according to Merrill, when Gibb’s daughter Rennie Gibb joined the firm as a real estate agent.

“When Bob made the decision to bring his daughter on board, all kinds of conversations that we had previously, were halted,” Merrill said.

In court papers, Merrill claimed he was fired in February 2022 after voicing to Gibb “a series of concerns” related to business practices at John’s Island Real Estate reportedly designed to monopolize the housing market and shut out competition.

Gibb and his company are accused of using connections at John’s Island Club to ensure that potential homeowners who worked with Merrill “would be wrongfully denied membership into John’s Island Club, oftentimes under the guise of some false or exaggerated premise.”

‘Irresponsible allegations’

Speaking on Gibb’s behalf, Murphy flatly rejected Merrill’s claims.

Gibb and Merrill first met in 2012, he said, when Merrill worked as a golf pro at the exclusive Redstick Golf Club off 58th Avenue in Indian River County.

According to Murphy, Gibb offered Merrill a career in real estate at his company and taught him the business.

“We find it unfortunate that he's made these reckless and irresponsible allegations against Mr. Gibb, who’s been doing work in this community for decades, who brought Mr. Merrill into John’s Island Real Estate,” Murphy said. “And who allowed Mr. Merrill to profit by the mentorship of Mr. Gibb under the John’s Island Real Estate umbrella.”

Robert “Bob” Gibb, left, with daughter, Rennie Gibb, middle, and his wife Wheatie Gibb, on right.
Robert “Bob” Gibb, left, with daughter, Rennie Gibb, middle, and his wife Wheatie Gibb, on right.

Additionally, he said Gibb never had an agreement to sell John’s Island Real Estate to Merrill.

“Mr. Gibb isn't planning to sell, but if he were, it wouldn't be to Mr. Merrill,” Murphy said. “So that is sophistry, in a dream-like composition that Mr. Merrill may have had.”

Murphy, too, denied that Gibb “in any way participated in any type of effort to … blackball, a client of Mr. Merrill.”

He noted that last month Merrill’s web site listed seven John’s Island properties for sale, including one home listed for $15.9 million.

“There is no one,” he said, “who's precluded from buying or selling real estate that is serving as a real estate agent or broker for a client who is not affiliated with John's Island Real Estate.”

Court papers show the case is slated for a jury trial in August 2025.

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Melissa E. Holsman is the legal affairs reporter for TCPalm and Treasure Coast Newspapers and is writer and co-host of "Uncertain Terms," a true-crime podcast. Reach her at  melissa.holsman@tcpalm.com. If you are a subscriber, thank you. If not, become a subscriber to get the latest local news on the Treasure Coast.

This article originally appeared on Treasure Coast Newspapers: Michael Merrill sues John's Island Real Estate on racketeering claims