Serving the Loop and Near North neighborhoods of downtown Chicago

Photo by Steven Dahlman

Condo owner lawsuits against Trump Chicago have failed at least twice

Trump trial continues this week

May 19, 2013 – The civil trial involving the buyer of two condo units at River North’s Trump International Hotel & Tower will continue on Monday, according to the lead attorney for the two companies being sued.

The companies are owned by The Trump Organization – Trump Chicago Managing Member, LLC, and 401 North Wabash Venture, LLC, which has been sued – unsuccessfully – at least twice in recent years by prospective unit owners.

In 2011, an appellate court upheld the dismissal of a lawsuit that claimed breach of contract by Trump. A Circuit Court judge had ruled that Trump had every right to terminate a purchase agreement, keep a $328,000 deposit, and sell their $2.1 million unit to someone else when buyers of one unit could not come up with the money to close on the purchase.

On April 10, 2013, an appellate court upheld a District Court ruling that dismissed a lawsuit filed by a would-be unit owner who claimed that putting parking spaces on the sixth floor of Trump Tower lowered his condo unit’s value. The buyer, Michael Burke, signed a contract to purchase a unit and two parking spaces at Trump for about $2.2 million. He paid a $456,000 deposit but later refused to close on the purchase, claiming the sixth floor parking was too much of a “material change.”

However, the appellate court pointed out that Burke had received a property report from Trump that said use of the sixth floor for parking was always a possibility.

Photo by Steven Dahlman A jury in downtown Chicago is currently hearing a lawsuit filed by Jacqueline Goldberg, an 87-year-old real estate investor who claims changes by Trump to her purchase agreement amounted to breach of contract. The six women and two men, including one alternate juror, met every day last week to hear opening statements from attorneys and testimony from current and former Trump executives, including Donald Trump (left) on Tuesday and Wednesday.

Stephen Novack of Novack and Macey, LLP, is the lead defense attorney. Representing Goldberg is Shelly Kulwin, who with his brother, Jeffrey, is a partner at Kulwin, Masciopinto & Kulwin, LLP.

At least two motions filed on Friday

On Friday, attorneys for Trump filed a motion asking Judge Amy J. St. Eve to tell the jury that a lack of certain documents, pointed out by Goldberg’s attorney, does not necessarily mean anyone has destroyed documents or is otherwise refusing to produce them.

Donald Trump told the court in his testimony there are no documents beyond what had already been shared. “We don’t write things down,” he said. “We get things done.”

Trump attorneys also wanted the jury reminded that Goldberg’s purchase agreement, they say, contained a provision that allowed Trump to make changes without the approval of unit owners.

Goldberg got her turn to testify on Friday, reportedly telling jurors that she was persuaded to buy at Trump Tower in part by an estimate that some of the condo building’s common elements, including ballroom and meeting room rentals, could generate $5 million per year in revenue for the condo association. That would have helped offset any losses, she said, as she planned to rent out the units and continue living in Evanston.

(Above) First and second setbacks of Trump International Hotel & Tower, photographed in 2009 from across Wacker Drive. (Click on image to view larger version.)

 Related story: Trump stands by contract with tower condo owner

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