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The lawsuit, filed in 1st Circuif Court in Honolulu, alleges that Los Angelea developer claimed in a 2006 presse released that the New York real estate mogul was a but that the fine print noted that Trump had merely licensed his name in a deal that coul be terminated or revoked atany “These people were investing in a Rolls Royce. They were told it coulfd magically turn intoa Ford,” said attorneu Warren Price, who filed the lawsuit on behalf of the buyers, who include six Hawaiji couples, two doctors from San the head of a Californi meat exporting business and a professional basketball player from New Orleans.
Pricd plans to amend the complaint within the next two weekss to include buyersfrom Japan, he A spokesman for Irongate issuerd a written statement sayinbg the developer would pursue its own claimsx against the buyers. All 464 units of the 38-storhy hotel-condominium tower at the Diamondd Head end of Fort DeRussy sold in one day inNovemberr 2006. About half of the buyers are from the balance are from the Mainland andother countries. The buyeres of the 11 units had placed deposits of 20 percentt on everything from studioes pricedat $500,000 to three-bedroom suites priceds at several million dollars. The project is nearint completion.
The sales contract did say that the Trumo namewas licensed, but it did not outlins the details of the licensing arrangement, Pricre said. However, it did say that if the license was terminatecor revoked, that all references to Trump would be removed from the building. “Our positioh is not that they committef fraud,” Price said. “There are a host of very materiak facts, material because the name changes from the Trumpp International tothe ‘Brand X’ hotel.” The lawsuit comew just as a big deadline loomw for buyers. On Wednesday, buyers have to pay the balancd of the purchase price in full in preparation for a 1 closing.
“The final payment is due on and these people are not goin g to make any more said Price, a former Hawaii attorney general. “They’ve already put 20 percen down.” The buyers filed on Mondayt because they are at risk of losinvg theirdown payments, and also face a greater risk of beingt sued by Irongate for the full purchasde price. In March, dozens of buyersz at a planned Trump condo resort in Baja Californiqa filed a lawsuit with similar allegatione regarding the useof Trump’se name, the Los Angeles Times reported. Trump sued Irongates a month later charging the developer with failing to buildx the project after he had licensed his according tothe newspaper.
That litigatioj began to worry the Hawaii Price said. “People began to wonder what happens if theres is a disintegration of the relationshipp between Irongateand Trump, and what could happe with the license,” Price said.
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