Politics & Government
Donald Trump Loses Golf Course Lawsuit, Ordered To Pay Nearly $6M
Members of his Jupiter, Florida, golf course said Trump wouldn't give them their refundable membership deposits.
JUPITER, FL — A federal judge ruled Wednesday that a company owned by President Trump must pay nearly $6 million to members of a golf club who said Trump and the company kept their refundable membership deposits when he bought the course.
When members were accepted into the old golf club, they paid membership dues, the plaintiffs said, that would be fully refunded after they left. After Trump and his companies took over the golf course, several members submitted resignation letters. Trump didn't repay their deposits.
U.S. District Court Judge Keith Marra ordered Trump's company to repay nearly $5 million in memberships and another nearly $1 million in interest.
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"Because Defendant did not refund Class Members’ deposits by January 30, 2013, it committed a material breach of the Membership Agreement going to the essence of the contract, causing Plaintiffs and the Class Members damages measured by the amounts of their refundable deposits plus accruing interest," Marra wrote in his ruling.
Brad Edwards, an attorney for the former club members, seemed sure he would win the case.
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"I have never been more confident after trying a case that this would be the result," Edwards told Politico. "To me, it was just a matter of time before this verdict came but I'm glad we got it."
Alan Garten, an attorney for the Trump Organization, said the organization would appeal the ruling.
"The members who resigned were all members under Ritz-Carlton who resigned prior to Trump taking ownership," Garten told Politico. "Trump purchased the club from Ritz and effectively saved it because it was in financial ruin. Notwithstanding the foregoing, we disagree with the judge's ruling and intend to appeal it."
Trump owned the company when the dispute took place, in 2012. After his presidential election win, Trump's son, Donald Jr., took over as president of the hotel, records show. Trump, though, still owns and has a financial stake in the hotel.
Trump was deposed on video in the case, and his son, Eric, testified in person during trial.
Marra, who was appointed by President George W. Bush, referenced Trump's presidency in his ruling.
"At all times relevant to this lawsuit, Donald J. Trump was a private citizen," Marra wrote in a foot note. "As a result, the Court will refer to him as such in this decision. In doing so, the Court means no disrespect to him or to the esteemed position he now holds."
This story will be updated.
Image via Gage Skidmore, Flickr, used under Creative Commons
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