As Donald Trump campaigns for president, his lawyers are attempting to defeat a lawsuit involving 65 people who say they were on a waiting list to receive their refundable membership deposits but have been charged dues and fees for a golf course, spa and other amenities they haven’t been allowed to use since 2013. The dispute involves about $2.4 million in fees owed by those filing suit.
Donald Trump’s deal making went on trial on August 15 in a legal fight over millions in disputed fees at his Trump National Golf Club Jupiter (Fla.)—where some say they get billed but aren’t allowed to play, the Fort Lauderdale, Fla., Sun Sentinel reported.
As Trump campaigns for president, his lawyers this week are in a West Palm Beach federal courtroom trying to defeat a class action lawsuit involving about 65 people. The lawsuit claims that since Trump took over the old Ritz-Carlton club, people on a waiting list to get their refundable membership deposits back have been charged dues and fees for a golf course, spa and other amenities that many haven’t been allowed to use since 2013, the Sun Sentinel reported.
Trump, in a video deposition from 2015 that was shown in court Monday, said he was surprised at the lingering legal fight. He said he spent millions on renovations of the golf course and the club “to make it beautiful,” the Sun Sentinel reported.
“It was very well received. People were very happy that I was buying (it) and taking over,” Trump said.
When questioned about the dispute over continuing to charge dues and fees for people not allowed to play, Trump said his son, Eric Trump, was more involved in the details of how that was handled, the Sun Sentinel reported.
“Eric is much more familiar with this club,” Trump said. “He runs it.”
While Donald Trump, the Republican Party’s presidential nominee, isn’t scheduled to take the stand in person, his son was expected to testify today, the Sun Sentinel reported.
The dispute involves about $2.4 million in fees owed by those filing suit, according to Trump’s legal team. The lawsuit argues that Trump in a 2012 meeting with club members, and in a letter to club members, said those seeking to get membership deposit refunds would no longer be allowed to use the golf course and other attractions—but that he would not expect them to pay yearly dues, the Sun Sentinel reported.
Later, the club’s policy changed and the dues kept accruing while those who had “resigned” their memberships where blocked from using the club, the Sun Sentinel reported.
“We have the absolute right to change our mind,” Eric Trump said in a portion of a videotaped deposition shown in court Monday.
Before Trump bought the club, some members had paid between $40,000 and $200,000 each for refundable club deposits to join. Annual dues can cost about $6,000 and members are charged a minimum fee for food and drink of $1,800, said attorney Brad Edwards, who represents those suing Trump National, the Sun Sentinel reported.
Prior to Trump, members leaving the club could get on a refund “waiting list” and would get their deposits back after a certain number of new memberships were sold. The wait could sometimes take years, so those members were allowed to keep paying annual dues and fees to continue using the facilities, the Sun Sentinel reported.
Trump sought to change that when he took over, offering members willing to forfeit their deposits the chance to pay reduced yearly fees and to also have access to other Trump clubs, such as the Mar-a-Lago Club in Palm Beach. Those who balked at the deal eventually found themselves locked out of the club, while the bills kept coming, according to those filing suit.
“It seemed rather unconscionable,” said Richard Slawson, one of those suing the club, who testified Monday about continuing to be billed by the club he paid $45,000 to join in 2005. “I wasn’t allowed in.”
Trump lawyers counter that long-standing membership agreements that predate Trump’s involvement require members to keep paying dues while they are on the waiting list for a membership refund. “There’s no excuse for them not to pay their dues,” said attorney Herman Russomanno III. And resigning a membership to seek a refund means that person has “no legal right to use the club,” Russomanno said.
Trump National plans to deduct the mounting fees from the requested deposit refunds, which for some people could end up accounting for their entire deposit amount, according to testimony Monday, the Sun Sentinel reported.
Brad Edwards, attorney for those suing Trump National, said it is “contrary to every equitable principle one can imagine” for the club to charge people fees for facilities they aren’t allowed to use. “They have to pay…for essentially nothing in return,” Edwards said.
Testimony in the trial is expected to conclude Tuesday. U.S. District Judge Kenneth Marra could then issue an immediate decision or take the case under review, the Sun Sentinel reported.
Tell Us What You Think!
You must be logged in to post a comment.