November 16, 2018

November 15, 2018

Subscribe to Latest Legal News and Analysis

November 14, 2018

Subscribe to Latest Legal News and Analysis

November 13, 2018

Subscribe to Latest Legal News and Analysis

Donald Trump Sanctioned for Failure to Disclose Insurance Policy In Ft. Lauderdale Condo-Hotel Case

Last week, Judge Kathleen Williams of the U.S. District Court for the Southern District of Florida granted plaintiffs’ motion for sanctions against Donald Trump for his initial failure to disclose a relevant insurance policy in connection with litigation arising from the failed Trump International Hotel & Tower in Fort Lauderdale. This action was brought by would-be be purchasers of condo units against Trump and the developers who licensed his name for use in the project. These purchasers allegedly lost their 20% deposits when the tower defaulted on its $139 million loan in 2009. Trump was the only defendant not to settle the claims.

LitigationIn his initial disclosures in 2011, Trump denied that any insurance policy relevant to plaintiffs’ claims existed. In November of 2013, however, plaintiffs learned from Trump’s general counsel that there had been such an insurance policy, but that it had since “dried up,” potentially as a result of a 2013 settlement with investors in Trump Baja. Plaintiffs subsequently filed a motion for sanctions, which Trump hotly contested for seven months. Plaintiffs theorize that the notorious apprentice-hirer/fringe political pundit/businessman has a national litigation strategy of failing to disclose applicable insurance policies that could otherwise be used to settle claims against him.

Judge Williams ultimately ordered Trump to pay all of plaintiffs’ fees in connection with two mediation conferences, a settlement conference, the sanctions motion and the deposition of Trump’s general counsel, potentially making it an expensive and embarrassing day for The Donald.

© 2018 Bilzin Sumberg Baena Price & Axelrod LLP

TRENDING LEGAL ANALYSIS


About this Author

Philip R. Stein, Complex Commercial Litigation Attorney Bilzin Sumberg, Law Firm
Partner

Philip R. Stein, a Partner in Bilzin Sumberg's Litigation Group, focuses his practice on complex commercial litigation. He regularly acts as lead counsel to mortgage companies, financial services companies, and large national homebuilders on a broad range of issues of importance to companies in those industries. Phil is currently devoting a substantial part of his practice to representing originators and sellers of mortgage loans throughout the country as they defend against loan repurchase claims made by banks and other investors. He also regularly assists companies...

305-350-7220
Shalia Sakona, LItigation Attorney, Bilzin Sumberg Law Firm
Associate

Shalia Sakona is an associate in the Litigation Group. Her practice is focused on complex commercial litigation, including the representation of sellers and originators of mortgage loans against major financial institutions in mortgage repurchase and indemnification suits throughout the U.S. 

While attending law school, Shalia interned with the general counsel of a commercial real estate investment and development company. She also served as a notes and comments editor for the Boston College International and Comparative Law Review

305-350-7216