Trump sues mexico

It's not like he needs the money, but there are principles at stake here - property tycoon Donald Trump is suing the developers of a condominium project in Baja California, Mexico - which he had endorsed - after buyers named him in lawsuits that accused the builders of taking their deposits without starting construction...

Donald Trump has filed a lawsuit against a Los Angeles developer that paid to use his name for an oceanfront condo project in Baja California but then failed to build it.

‘The Donald's' lawsuit comes a month after he and the developers were sued by 69 of the Trump Ocean Resort Baja condo buyers who said that they had lost more than £12 million in deposits when the project failed to start.

The three-tower project was to contain 525 five star units on 17 oceanfront acres about 10 miles south of the U.S. border. There was also to be a luxury restaurant, spa, tennis courts and hiking trails.

More than 80 per cent of the units, which range in price from £184,000 to £2 million, were snapped up by eager buyers, who each put down a 30 per cent deposit, in 2006 and 2007. Those buyers are now demanding full compensation.

Buyers were led to believe that Trump played an active role in the development, held an equity stake and that his children had bought condo units. This was not in fact the case.

In February of this year, Trump announced that he had withdrawn from the project because the developer had run out of money and was not able to complete the job.

A month later, the developer disclosed that it was not going to complete the Baja development.

Under the terms of the licence agreement, the developers, Jason Grosfeld and Adam Fisher, were required to protect and defend him from the buyers' claims. Trump is now chasing a whopping £26.8 million in damages.

Donald Trump said, "The defendants, as the developers of the project, were entrusted with ensuring that the project would be constructed and developed in accordance with the buyers' purchase contracts and in keeping with the high standards of luxury, quality, reliability and dependability associated, throughout the world, with the Trump name," Trump said in the complaint.

Trump Ocean Resort Baja: you're fired!

Picture by Walking Geek