The Real Deal New York

Donald Trump hit with sanction in SoFla case

Mogul on the hook for legal fees after not disclosing $5M insurance policy
June 20, 2014 01:50PM

From the South Florida site: Donald Trump was hit with a sanction from a federal judge for failing to disclose a $5 million insurance policy when claims tied to the scuttled Trump International Hotel & Tower project were being settled.

U.S. District Judge Kathleen Williams ruled that the celebrity developer and the Trump Organization are on the hook for legal fees. Trilogy Properties and seven individuals were seeking to recover deposits on unit purchases at the failed Fort Lauderdale condo-hotel. Trump was the only defendant not to settle after developer SB Hotel Associates defaulted on the $139 million construction loan in 2009 and a slew of lawsuits were filed to recover deposits.

Miami attorney Jared Beck, who represented Trilogy and the other plaintiffs, asked for sanctions in November 2013, according to the Daily Business Review. Beck allegedly was told by Trump Organization general counsel Alan Garten that an existing insurance policy “dried up.”

Trump still is dealing with lawsuits tied to condo developments in 10 cities, including Sunny Isles Beach and Tampa. [Daily Business Review]Eric Kalis