Trump Towers Lawsuit for $100M in Cancellations

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Trump Tower I in Sunny Isles Beach Well, well, what’s new this week amongst the Miami Beach real estate news & gossip wire… Trump Towers I, II & III losing the “Trump” name!? What a shock, yet unsurprising. The latest news is that over 80 buyers (speculators) have hired an attorney seeking the cancellation of more than $100 Million in condo contracts and the return of $20 Million in buyer deposits. The uncertainty came when the Condo Docs and Sales Contracts did not specify the Trump name yet held firm with the Trump sales & marketing materials of the brand name condo developments Trump Towers I, II & III in Sunny Isles. The lawsuit filed in Miami Dade Circuit Court claims the developers used the celebrated Trump name to attract the buyers but did not obtain a license agreement for the associations or purchasers to use the Trump name, making it likely to change names once the developer relieves themselves to the condominium board.

“But according to the suit, the billionaire’s name can only be used temporarily and for promotional purposes and may be changed once the units are sold out, the buildings are completed and the developers are no longer associated with the project.” DailyBusinessReview.com 6.12.08

The argument for withholding the Trump name comes with an apparent 36% premium on the Trump brand name compared to other similar condos. Additionally, the lawsuit claims Trump Tower cut back on promised amenities, including the size of promised condos, lower quality kitchens, and the lack of a resort-style swimming pool. The suit claims buyers were duped into overpaying for their units because the developer operated a fraudulent and misleading resale program by manipulating resale asking prices in Trump Tower I to support vastly inflated sales prices for Trump Tower II and Trump Tower III condos units.

“Let’s say someone bought a unit in Tower I for $700,000 and wanted to resell it for $900,000,” The person would sign an agreement with a minimum price of $900,000, but the brokerage firm and the developers would list it for $1.4 million. So when buyers looked at Tower II they said, ‘Wow, the prices for these units are going up fast.”

The developers have, in fact, monopolized resales by restricting buyers/speculators from listing their condos through the (MLS) Multiple Listing Service. Today there are 40 units listed on the MLS, with a few coming from Trump Tower II (15800 Collins Avenue). Prices are very good for new luxury oceanfront real estate with 2 bedrooms starting in the high $ 500s and selling in the low $ 500s while 3 bedrooms on high floors start around USD $900. Today’s highest asking price is unit #1201 at $2.297M, just under 3,000 square feet (This agent/owner is dreaming!).

The new Trump Tower I (16001 Collins Avenue) signage out front clearly represents Trump Tower I and seems to be a costly investment only to see it removed. I tend to think it will remain Trump Towers, but also I’m interested in seeing what happens over the next few years.  Remember the ‘White Diamond’ now known as ‘Akoya’? It could happen… Let us know what you think about it or if you’re involved in this project! Oh, btw, if you haven’t subscribed to this blog yet, do it now! If you’d like new blog updates once available, you can be notified by email or RSS feed (see upper left column) every time a new posting occurs. 1.888.38.DREAM

About Ashton Coleman

Ashton is a tech & social media savvy professional who understands the industry providing white-glove service with a wealth of experience, an impeccable reputation, and a keen ability to efficiently handle all facets of real estate. Ashton’s territory has grown significantly since 2002, marketing & selling extraordinary South Florida coastal real estate from Miami Beach to Lighthouse Point. A Certified Luxury Homes Marketing Specialist (Million Dollar Guild), with a multitude of other residential certifications, Ashton provides both exceptional service and unique selling techniques. His success is attributed to an unparalleled work ethic with years of experience including top-tier professional services where the ‘art of the deal’ is mastered in contract negotiations, deal-making intricacies and the end, results-driven real estate.

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40 thoughts on “Trump Towers Lawsuit for $100M in Cancellations”

  3. Peter at the end of the article there is a copy of the law suit – LAWSUIT RECORDS scroll down and you will find the name of the attorney and his phone number

  4. My husband and I got “suckered” into the Trump Tower Condo scam in the Baja, Rosarito Beach, Mexico. Trump or someone has $250,000 deposit for a two bedroom condo/hotel in the first tower (2006. )We were supposed to be getting the key this fall 2008 at the latest. They have not even started building the first tower and they have our money at no interest and no one seems to know who to telephone. We are talking to an attorney here in California. Every six months or so we get a phone call from the building contractor, developer or an obscure person and a message is left with no where to call telling us that they are going to be breaking ground that month. Would like to talk to someone who can help us and also others who are in the same situation. If there is a Class Action suit we would like to know about it.

  5. The probability that Trump Baja will ever be built is slim to none. The developers pulled the wool over all the purchasers’ eyes by selling the product in San Diego to Americans only. If they would have done this sale in Mexico to Mexicans it would have been totally illegal. To start off they did not even have building permits to build the resort and it is questionable that they even have the permits today. They supposedly did $160 Million in sales with 30% deposit monies that is $48 Million in cash collected. They say they DO NOT have any money, what happened to the $48 Million? I do not care that they cannot get financing to build the project; they should have already had the funds to build before taking our money. Didn’t Trump/ Irongate just get done selling $800 Million in Hawaii in one day, where did all the money go? How many of you have purchased and have asked for a refund and have been told they will not refund but offer to sweeten the deal? This project is a runaway train and they are about to crash with our money, what are we going to do about it? We all need to get together and start a class action lawsuit, against first off The Trump Organization because lets all face it without the Trump name we would have never purchased at the resort. Irongate also included in the suit because they are the ones behind this fiasco. A lien can be put on all of PB Impulsores assets; they are the company on the contracts but claim to not being owners of the property where the resort was to be built. The property apparently is in a trust and according to Irongate it cannot be touched. In Mexico there needs to be proof that the Trust and PB Implusores are the same company and that can be proven. They definitely have created a very sophisticated assortment of companies in order to protect themselves from any legal problems but they are not infallible there are ways to get at them. We all need to ban together and bring this public, TV, Internet, start a website, California Attorneys General office, Youtube and any other means possible in order to not let Trump and Irongate get away with our hard earned dollars.

    See link below, people are coming together.
    http://quepasabaja.com/?p=490#comment-77294

  6. Hello all Trump Baja Buyers. A group of us are getting together and having a consultation (free of charge) with an attorney in a week or two from now. If there are any buyers out there that are intersted in joining us, please send me an email and I will send you more information. My email address is: emailhamed@aol.com

  7. please send me info after the meeting to tell what took place. I am not avaiolable to come out to L.A. nor is it in my schedule on that Sunday to be in a conference call.

    Thank You
    Rick Mariani(investor)

  8. Does anyone who bought at the Trump building in Rosarito know what is going on? I heard on the radio,November 1, 2008, that the German bank financing for the project had fallen thru and that there were doubts if the investors would get their deposits back. I haven’t seen nor heard anything else since then.

  9. Ladies and Gentlemen –

    I purchased a unit in the Spa tower. I’m trying to get my money back for months now. Matias finally gave me Irongate’s phone no. (+1 310-441-1172) so I called the lady that is in charge of Trump Baja project – Alana Jacobs. From her I learned that I can’t get the money back as they never broke the contract and I’m free to take any legal action.

    You probably got the ridicules announcement on Nov 04 that basically said nothing.

    I don’t want to repeat all what’s been said but some facts:
    1. No building permits.
    2. No financing (I was initially told by the sales team that funding was secured for the project)
    3. No construction started.
    4 Trump is just a name – zero investment.

    *** We need to get our money back ***

    I had a similar situation in Las Vegas – we got our money from the developer, we didn’t pay the lawyers up front but a % at the end. I can engage that firm and start the process.

    Some related web sites that you should take a look at:

    http://bajarealestateblog.blogspot.com/2008/01/baja-real-estate-trump-update.html

    http://quepasabaja.com/?p=490#comment-77294

    http://miamibeachrealestateblog.us/2008/06/18/trump-towers-lawsuit-for-100m-in-cancellations/

    http://www.forbes.com/forbes/2008/1117/034a.html

  10. What about the sales and marketing company? What is their role and responsibility in all this, particularly as it pertains to disclosure to the consumer? I am pretty sure they were all licensed by the state of California – isn’t there some recourse there?

  11. I am a Mexican citizen and would like to get in contact with other buyers of Trump Baja Resort units who are Mexican citizens, so that we might conduct legal action as a group against the developer PB Impulsores S. de R.L. de C.V. in Mexico in addition to any legal efforts that are developing in the US.

    If you are such a person please contact me at hmbucks@yahoo.com

  12. Folks,
    I should have tried to find this site again regarding the Trump Tower Baja Resort “ripoff”” after I posted on 9/20. I will take some time later today to write to some of the e-mails to find out what progress you have made and join you! Today (12/26/08) we received a several page statement from PB Impulsores (who we had never heard of before) that the name of the “project” is now Trump Marks Baja with a Project Status Report and the other Construction Costs Report. The report tells us that we are buyers and not investors!! We gave them the right to spend the money and very little is left. We have no rights, not even to communicate with them! They will communicate with us when they want!! Look up Skyscraper.com website and it shows Trump Organization, PB Impulosres, and Irongate are the “Development Team!!” Please contact me – ldainc@earthlink.net. What a scam! Is this any different then “Madoff” and the other Ponzi artists who have been taking people’s money? It is one thing to have tough economic times but another to lie and scam people. S&P Destinated Properties, the marketing and sales group units we realize now lied to us over and over again. Tracey Colliningridge was the sale agent who worked with us. After we put a $250K deposit on Tower I she tried to cut deals with us to buy in Tower II. That group are all from Canada!! S&P is a Canadian Company!! We were told by Tracey Collingridge (I am sure the name has changed) that she owns a unit in every “Trump Hotel,” the ex-ex- Mrs. Trump owns a penthouse above our unit in Tower I, Donald Jr. is going to manage this operation in the Baja and on and on!! S&P is also responsible. If you go on line you will see the other projects S&P are selling! Buyer beware!!

  13. Dear Concerned Trump Baja Investor,

    My law firm, Lurie & Park LLP, specializes in real estate litigation and is aware of the growing concerns regarding delays in construction at Trump Baja Resort. My firm currently represents a client who will be filing for arbitration to get her deposit back.

    As concerned investors increase, my firm has begun to monitor the situation. It is clear that the developer has delayed construction. Unfortunately, because the developer is still struggling to acquire financing, this can lead to further delays, which can potentially span a number of years. The attorneys at my firm believe that there is a strong case that the developer is legally required to refund the deposits.

    We are in the process of forming a plaintiffs group to share in the costs of the arbitration. The more buyers we represent, the more each saves in legal costs (e.g. 5 clients = 20% of legal costs for each client). If you are interested in joining the group, please contact me.

    Dane Harrison Taylor
    Case Manager
    Lurie & Park LLP
    (310) 207-9400

  14. I bought in the Spa Tower, I recieved e-mails stating that they had approval on the financing.
    That was a lie and the attorney that I spoke to who represents these crooks said that they basically can lie as the contract states they are not responsible for what Trumps people say. Donald Trump is a crook ,I hate that PRICK

  15. If anyone has info on getting our money back in BAJA. Let me know. I am interested in jpining a large group taht will go after TRUMP/IRONGATE..

  17. Hi Folks,
    I have had a couple folks who contacted me. I am forwarding what info I have to them. Also got the name of an attorney in Woodland Hills and would like to know how many of you have selected an attorney in a Class Action Suit and which one. It would also be good to know that we have an attorney who is not taking our money either. That type of situation happens so often in these cases. The victim can easily be victimized again. Please let us get together and do everything we can to get our money back. Igor I agree with you 100% on Trump. He is a slime bucket who may not get away with it this time. Please note that he is entering a law suit with the City of Palos Verdes over not getting his way. We need to watch that. Also, he has lost some battles in Florida court as well. We need to believe that we will get our money back! We need to remember and keep notes on what the sales people told us as well. Look forward to hearing from you folks. I will be busy e-mailing some of you. Linda Drake

  19. Linda and other frustrated buyers,

    I’m sure many of you received the email on 1/30/09 that Trump has terminated their license agreement with PB Impulsores. In fact, the trumpbaja website has been removed, which makes me believe the project is now completely DEAD. PB Impulsores will no longer provide any feedback on the status of this project. I purchased a unit in Tower 2 and feel violated by Trump’s actions. Please include me on any email correspondance as I would like to join the group in a class action lawsuit. I have contacted an attorney in WI (where I live), but I believe we all need to band together. Thanks Mike mdschieb@gmail.com

  20. No one has mentioned the sales organization that promoted this fraud: S&P Destinations. Were they not licensed? They should be called on to explain the representations they made to so many buyers.

  22. Pingback: Sunny Isles Beach (2008 year end) Waterfront Condo STATS & Trends « Ashton Coleman’s Weblog ^ Vodcast ~ Covering Sunny Isles, Bal Harbour, North Bay Village & Miami Beach Real Estate

  23. I have just received and e.mail from PB Impulsores
    I am very concerned, my wife and I bought in
    Tower 1. I would like to join you so we could
    do a lawsuit. Please give some advise on how
    to proceed. thanks, Luis

  24. Dear Trump Baja Buyers,

    For more information about our Class Action Lawsuit please contact our attorney for information:

    Daniel J. King
    Law Offices of Daniel J. King
    The Trillium Building
    6320 Canoga Avenue, Suite 675
    Woodland Hills, California 91367
    (818) 587-9299
    Worldwide Fax Toll Free (866) 260-2160
    Alternate Fax (818) 587-9292

  26. Below is the complete phone number for the attorney leading the Class Action Suit. He is representing over 60 Trump Baja condo buyers.

    Daniel J. King
    Law Offices of Daniel J. King
    The Trillium Building
    6320 Canoga Avenue, Suite 675
    Woodland Hills, California 91367
    818-587-9299
    Worldwide Fax Toll Free 866-260-2160
    Alternate Fax 818- 587-9292

  27. Please do not give in to Trump. He just files suits after suits against every one including his defending lawyers. Take a look how much money he has taken from the Trump Baja where he still has a Bill Board with his picture.What a terrible person he is. I hope to get my money back from him for the Trump-Baja resort that never took off the ground. He didn’t even get the financing to build the resort so he and his partner said but they continues to sell the condo and continues to take more money till June of 2008. It all started in 2006. We received the letter from the Title company that the Trump-Baja resort has withdrawn all the money from the Escrow and the Title company has resigned.
    I hope people open their eyes and do not do any business with Trump.
    PLEASE EVERY READ THIS. I HOPE JUDGES HOLD HIM ACCOUNTABLE FOR ALL USING HIS NAME AND DECEIVING EVERY ONE.

  28. I bought the condos because of Trump other wise I would have not purchased. I was so scared of going to MEXICO THAT i NEVER MADE A TRIP BECAUSE OF TRUMP i BOUGHT THE CONDOS. IT WAS ALL SCAM FROM THE BEGINNING.I WANT MY MONEY BACK.

  29. If you are a purchaser of a condominium at the Trump Baja Resort, please call Bart Ring or Daniel King at 818.587.9299. Our offices currently represent over 80 buyers at the project. you can also refer to bartringlaw.com

  30. 3/09/09 Hi Folks,
    Just an update for a couple of you who don’t
    have access to our U.S. news – my husband and
    I have joined about 70 or more other
    members from the Trump Baja Resort scam and
    are working with attorneys Daniel King and Bart
    Ring from Woodland Hills. Their phone numbers
    and address are located in several areas of the
    comment section. We are very pleased.
    Good Luck
    Linda Drake

  33. Hello!
    Very Interesting post! Thank you for such interesting resource!
    PS: Sorry for my bad english, I’v just started to learn this language 😉
    See you!
    Your, Raiul Baztepo

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  35. Hi !!! 😉
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  36. formidable site this miamibeachrealestateblog.us great to see you have what I am actually looking for here and this this post is exactly what I am interested in. I shall be pleased to become a regular visitor 🙂

  37. 07/26/09 Hi Gringos:
    To those of us who have purchased in Baja
    I was told that we are “stupido Gringos” and now I believe it after reading this blog. The same thing is happening in San Felipe at El Dorado Ranch/LaVenta del mar!
    Purchased a condo to be built in 2005 and guess what! The developer has my money, over $200,000. and not completed as yet.
    Looking for others to start action against the developer. Good luck with your action on Trump Towers. Betty Wingfield

  39. Rick,

    For info on the status of the Trump Baja Class Action Lawsuit contact Bart Ring or Daniel King at 818.587.9299. You will find an abundance of news articles on the website: http://www.bartringlaw.com At this time our group has grown to 105 members and we are being represented by two phenomenal attorneys with exceptional experience and expertise. You will be quite pleased with the feedback from members of our group.