Trump wins last two counts of lawsuit

1-Jun-13 – Two companies owned by Donald Trump were officially declared the winner on Friday of a civil trial that brought the real estate mogul to Chicago to testify.

The complaint was over two hotel condominium units that Jacqueline Goldberg agreed to buy at Trump International Hotel & Tower – one for $1,239,500 and the other for $971,687. Goldberg said it was her understanding that she would also own a portion of ballrooms, meeting rooms, and other hotel amenities that could generate revenue of $5 million per year. When Trump exercised a clause in the purchase agreement to take back the common elements – before Goldberg had closed on the units but after she had paid $516,457 in deposits – the 87-year-old real estate investor called it fraud and breach of contract. In addition to getting her deposits back, Goldberg was seeking damages totaling about $6 million.

There were five counts in an amended complaint filed in 2009. A jury was brought in to decide two of the counts, finding in favor of Trump on May 23. The judge decided in Trump’s favor on one count last October and then two counts on Friday. The last two counts were an alleged violation of the Illinois Condominium Property Act and a breach-of-contract claim.

In her 38-page decision, U.S. District Court Judge Amy J. St. Eve ruled there was no evidence that Trump knew in 2006 that they would eventually take back the common elements, no evidence they did anything unusual for the hotel/condo industry, when they did take back the common elements it was a reasonable thing to do, and that Goldberg – who she described as “a sophisticated purchaser” – was aware of Trump’s right to make the changes.

“When defendants began developing Trump Tower, they lacked experience with hotel condominiums and therefore needed to alter their plan as development progressed,” wrote St. Eve (right) in her ruling.

Trump was on the witness stand at Dirksen Courthouse in downtown Chicago on May 14 and May 15. His Trump Organization owns the two companies that were sued, 401 North Wabash Venture, LLC and Trump Chicago Managing Member, LLC. 401 North Wabash Venture has been sued at least three times by prospective unit owners, with Trump winning each time.

 Related story: Chicago jury sides with Trump in tower dispute