irongate

Donald Trump Sued In New Lawsuit Over Failed Project

Looks like the saga of the failed Trump Ocean Resort Baja is far from over. Radar Online has documents that show a new lawsuits has recently been filed by seven investors in the project. The individuals sued not just Donald Trump but his children, Donald Trump Jr. and Ivanka Trump and others saying they were " duped into buying hotel-condominium units that were never built." The plaintiffs have asked for punitive damages of no less than $10 million dollars.

The lawsuit details the many ways that the plaintiffs feel like they were swindled by Trump. They were led to believe that Trump was directly involved when instead it was a licensing deal. The lawsuit produces evidence including newspaper stories to prove that the project was widely known as a Trump project and that Ivanka Trump and Donald J. Trump, Jr. attended key sales events for the project and announced that they would be purchasing units in the project.

What was to be a 526-suite luxury project with a spa, swimming pool, restaurants and shops has instead turned into an abandoned excavation site with six cement pads sitting on it. The lawsuit papers say that Trump and the developer Irongate did not have financing and construction permits approved before the sales and that the site itself had contamination and mold issues. There is also an allegation that certain "favored" buyers were allowed to purchase without a deposit while others including the plaintiffs were forced to tender hefty sums before purchase.

Last year after a first lawsuit in which investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico, Trump filed a lawsuit of his own. His lawsuit accessed Irongate Wilshire's principals of not following through on the plans for the five-star resort which bore his name. At that time Trump claimed that he was "unfairly targeted" by the buyers' lawsuit because he was not a developer of the project but the latest lawsuit does indicate that his family's involvement may have gone deeper than a name.

Tags: donald trump, failed condo project, irongate, trump baja

Another Lawsuit Over The Value Of The Trump Name

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Once again the use of the Donald Trump name has gotten a developer in trouble. Earlier this year angry investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico. Now some of the buyers at the new Trump International Hotel & Tower Waikiki Beach Walk have filed a lawsuit looking to get out of their sales contracts. Once again they said that Irongate misrepresented Donald Trump's role in one of their projects. The sellers claim that Irongate said in 2006 that Donald Trump was a co-developer of the 38-story project but that the developer had only licensed the Trump name. The lawsuit alleges that Irongate concealed the terms of the license. The popular project set records in 2006 when sales opened and the units sold out in a single day with units selling for millions of dollars.

The lawsuit says that the buyers were only told right before final deposits were due that the project was Trump in name only. This led to concerns about the worth of the real estate if Trump pulls his name from the project. The AP reports that the lawsuit will be amended to add more buyers. The Trump name was also involved in a similar lawsuit in Florida. Trump is not named in these lawsuits but certainly they must bolster his belief in the value of his name and brand.

Source

Tags: donald trump, DonaldTrump, hawaii, irongate, lawsuit, waikiki