Trump Waikiki Beach Buyers Sue Real Estate Developer

On July 13, 2009, buyers of 11 of the units available at the Trump International Hotel & Tower in Waikiki filed a lawsuit against the real estate developer seeking to cancel their real estate purchase contracts because the “use of the Donald Trump name on the luxury condominium project is not guaranteed.” The law suit was filed in the First Circuit Court in Honolulu, Oahu, and alleges that the real estate developer, Los Angeles area Irongate, claimed in a 2006 press release that Donald Trump was a “co-developer” in the project. However, the fine print notated that Donald Trump was merely licensing his good name in a real estate deal that could be revoked or terminated at any time by him.

This is the same issue that is occurring the Northern Baja Mexico area with Donald Trump, Irongate, and other buyers in that luxury condo project. Among the plaintiffs in this Honolulu lawsuit include six Hawaii couples, the head of a California Meat exporting business, a professional basketball player from New Orleans, and two doctors from San Diego. According to sources, plaintiffs from Japan will be included in the lawsuit.

The real estate sales contract did state that Donald Trump’s name was licensed but it did not list the details of the license arrangement; it did state if the license was ever revoked, removed, or terminated, then all references to the Trump name would be physically removed from the condominium project. There are time deadlines, such as the buyers are under contract with Irongate to close and fulfill their purchase contract by September 1, 2009. Thus, they may risk lawsuits against them from Irongate as well. Things could get very interesting legally.

In regards to the Baja investment project in Baja Mexico, Donald Trump has sued the developer Irongate with failing to build the project after he had licensed his good name there; apparently, Irongate pulled out of that project entirely after funding with Deutch Bank failed in late 2008. Thus, the legal issues with this case, and other similar cases, are pending and should prove to be very interesting in terms of what will happen next. I will do my best to periodically update this blog commentary on the latest Trump real estate law suit news.
Mark Blane
Connect with me
Founder of The Law Offices of Mark Blane, APC
Trump is doing a fantastic job of being in the news. No matter whether it's good or bad for him, he's there. So much exposure.
by Aloha Tony November 22, 2010 at 06:15 PM
Post a Comment