Trump-Owned Golf Course Must Pay Members Millions
February 3, 2017
A federal judge in Florida this week ruled that the Trump National Golf Club in Jupiter must pay $5.7 million for refusing to refund membership fees to people who wanted to resign from the club. President Donald Trump bought the struggling club in 2012 from Marriott Vacations Worldwide for just $5 million, but also assumed up to $50 million in debt, money owed to members who put down refundable deposits and wanted out of the club. Trump sent those 65 members a letter saying they would have to continue paying annual dues, but could no longer use the club, and also saying their fees would not be refunded until new members were found to replace them, a process that could take years. Judge Kenneth Marra of the Federal District Court in West Palm Beach called for the club to pay $4.85 million in withheld fees, plus an additional $925,000 in interest and other costs. The ruling marks the first court judgment against a company owned by Trump since he was sworn in as U.S. president last month. Though Trump has stepped away from operations of his company, he remains dogged by legal controversies connected to his business, unusual for someone in his position. A spokesperson for the Trump Organization said it plans to appeal.
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