Trump sues New York: it could cost the city $ 30 million
'22.06.2021'
Lyudmila Balabay
The Trump Organization filed a lawsuit against the City of New York on June 21 for early termination of the Bronx golf course management contract at the beginning of 2021. The lawsuit claims that this move by the mayor's office "was politically motivated and therefore should be canceled." The details were told by the publication NBC.
The lawsuit alleges that there is no clause in the 566-page contract between the Trump Organization and the mayor's office that would give New York Mayor Bill de Blasio the right to unilaterally terminate the contract ahead of schedule after supporters of the president stormed the US Capitol. It was the storming of the Capitol and its alleged support from the 45th US President Donald Trump that the city called the reason for the termination of the contract.
The Trump Organization is demanding that it be allowed to continue running the golf course or that the city pay millions of dollars in forfeit.
“The actions of Mayor de Blasio were completely politically motivated, they have no legal basis and are another example of the mayor in office promoting his own party agenda and interfering with free enterprise,” the Trump Organization said in a statement.
City officials responded by saying that Trump had “clearly violated the terms of the contract” and that they would “vigorously defend” his decision.
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When de Blasio announced in January 2021 that he was breaking the golf course management contract with Trump, he referred to the president's "criminal actions" allegedly inciting the storming of the Capitol. Then the mayor argued that he could prematurely terminate the contract with the Trump Organization and not pay her a cent.
The termination of the contract was part of the response from many organizations to Trump's statements during the January 6 event. Insurers, banks and brokers also refused to do any business with the 45th president's company.
The city then cited a decision by the Professional Golfers' Association of America to cancel a tournament that was planned to be held at one of Trump's golf courses in New Jersey.
City officials said Trump can no longer bring prestigious tournaments to the Bronx field as required by his contract. This allegedly became the basis for the termination of the contract.
However, the Trump Organization's lawsuit says the contract does not require her to enter the field of tournaments, but only obliges her to maintain the field in "first-class tournament quality."
Attached to the lawsuit are letters from course designers, golf organizations and famous golfers stating that the course meets this standard.
City officials say the Trump Organization has interpreted the phrase "first-class tournament quality" "too narrowly" and that evidence of Trump's inability to attract tournaments to the field for any reason will be sufficient to terminate the contract without paying him any money.
Under the terms of the contract, the City Hall of New York can terminate the deal with Trump at any time for no reason, but in this case, it is obliged to compensate the Trump Organization for the money invested in the construction of the club on this field. Trump's son Eric previously said the city would have to pay more than $ 30 million, the same figure cited in the lawsuit.
As ForumDaily wrote earlier:
- On January 6, 2021, the US Congress met in Washington, DC to approve the results of the presidential election. At the same time numerous supporters of the then current US President Donald Trump crowded under the Capitol building to protest against these results... The situation quickly escalated and turned into chaos. Protesters took over the Capitol, and Congressmen had to evacuate and hide in shelters. As a result of clashes between the police and the invaders of the building, 5 people were killed.
- Trump initially supported the invaders, which led to condemnation of his actions from many organizations, and also served as a reason for second impeachment trial of the 45th president.