TRUMP ORGANIZATION SUES NYC FOR TERMINATION OF GOLF COURSE CONTRACT

The Trump Organization sued New York City on Monday for cancelling its contract to run a golf course in the Bronx earlier this year, a move it said was politically motivated and should be reversed. The Trump Organization is a group of about 500 business entities of which former President Donald Trump is the sole or principal owner. 

The lawsuit, filed in state court, says nothing in the 566-page contract gave New York City Mayor Bill de Blasio the right to terminate the deal after the president’s alleged supporters stormed the U.S. Capitol earlier this year.  The company is demanding that it be allowed to continue to run the course, which has dramatic views of the Manhattan skyline, or that the city pay millions of dollars to buy them out.

When de Blasio announced he was kicking Trump off the course in January, he cited Trump’s criminal action in inciting Capitol rioters, arguing that he could fire him “for cause” and not pay him a dime. 

The firing was part of a backlash against Trump after the January 6 violence.  Insurers, banks and brokers also refused to do any future business with the former president’s company.

The city said that Trump could no longer argue he can attract prestigious tournaments to the Bronx course, called Trump Golf Links at Ferry Point, as is required in the contract.  They said Trump is clearly in breach of the contract terms and will vigorously defend its decision.

In its lawsuit Wednesday, the Trump Organization said the contract doesn’t require it to attract tournaments, only obligating it maintain a course that is “first-class, tournament quality.” Attached letters from course designers, golf organizations and famous golfers including top-ranked players Dustin Johnson and U.S. Open champion Bryson DeChambeau, saying the course met that standard were in the lawsuit.

“The City has no right to terminate our contract,” Trump Organization officials said in a statement.  “Mayor de Blasio’s actions are purely politically motivated, have no legal merit, and are yet another example of the mayor’s efforts to advance his own partisan agenda and interfere with free enterprise.

The Trump Organization pocketed about $17 million per year from operating two Central Park ice skating rinks, the Central Park Carousel and the Trump Golf Links at Ferry Point.  All contracts, with exception to the golf course, were set to expire earlier this year and not renewed.  The suit alleges wrongful termination of a long-term contract at Ferry Point, which wasn’t due to expire until 2032.

Under terms of the contract, New York City can terminate its deal with Trump at any time without cause, but would be obligated to compensate Trump for money it invested in building a clubhouse on the course.

Eric Trump, Trump’s son lashed out at the city decision as part of “cancel Culture” earlier this year, has said the city would have to pay more than $30 million, a figure also cited in the lawsuit.

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