Legal News

Developers of nonexistent Trump Baja resort get sued by Donald

By Richard Binder

Last month investors in Donald Trump's proposed 526-suite Trump Ocean Resort Baja filed lawsuits in Los Angeles Superior Court when the project fell through and no forthcoming refunds.  Buyers were led to think that Trump played an active role in the development, Trump Ocean Resort Baja, and held an equity stake and that his children had bought condo units, according to the March 13 complaint. In truth, Trump had accepted a licensing fee for the use of his name.

And now the Donald is striking back against the developers in a suit that seeks $40 million in punitive and compensatory damages. The embattled magnate allegedly wants to use the lawsuit as a way to help the buyers get their money back. 

Trump accuses Irongate Wilshire principals Jason Grosfeld and Adam Fisher of failing to follow through on promises to build the five-star resort and demands a full accounting of what was done with the $32 million in down payments collected from condo buyers.

The suit was filed in the Southern District of New York.

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Full post as published by Legal Pad | LA on April 10, 2009 (boomark / email).