Donald Trump is one of several Florida developers facing lawsuits from customers who bought during the height of the market and now want their money back. “More suits seeking refunds under a federal law regulating condo sales have been filed in South Florida than in the rest of the country combined,” according to a recent study by Bloomberg News.
Needless to say, the lawsuits are spawned by the dramatic decreases in the South Florida market, which destroyed anybody out to make a quick buck. But there is also a new aggressiveness in the market, as attorneys organize buyers to fight their deals.
Attorney Robert Cooper told Bloomberg he has filed suits for more than 1,500 clients in the last two years. And developers, often desperate for crash are willing to play ball. Cooper told Bloomberg he’s settled 500 cases out of court.
 Trump Royale |
Many of the suits are filed under provisions of the Interstate Land Sales & Full Disclosure Act, which regulates the marketing of large residential developments.
The Trump International Hotel & Tower in Ft. Lauderdale was one of the projects targeted. But Trump only licensed his name to the 298-unit development. “We are not the developer of this project,” a Trump attorney told the news service. “We are just the brand which licensed the use of the Trump name.”
In another development using the Trump name, Trump Royale, part of the Trump Grande near Miami, 380 units pre-sold for $1 million each. Only about 180 have closed, according to the report.
“Those lawyers are trying to throw as much out as they can to see what sticks,” the developer told Bloomberg.
Trump is paying the price for licensing his name in many markets. In Baja California, Mexico, Trump’s promotional efforts are at the center of controversy over the Trump Ocean Resort Baja. Buyers lost more than $30 million in deposits when the project was abruptly cancelled, prompting a flurry of lawsuits between buyers, Trump and the L.A.-based developers..
