Donald Trump is demanding as much as $75 million from hundreds of condo owners in Panama City’s Trump Ocean Club, alleging that its directors wrongfully fired his company as administrator managing the luxury building that is the tallest in Central America.
The Republican presidential candidate and celebrity businessman filed his claim confidentially with the Paris-based International Chamber of Commerce court of arbitration, The Associated Press has learned. The court organizes arbitration over complex civil settlements, often involving business deals that cross continents.
Trump’s claim alleged a criminal conspiracy to remove his management company from its unpaid position as building administrator for the luxury property in Panama City. As the AP reported last month, the owners’ board of directors had accused Trump’s managers of repeatedly exceeding budgets, paying themselves bonuses without permission and improperly passing costs from the building’s Trump-controlled hotel.
At a key vote in May, building investors and residents overwhelmingly rejected a Trump-backed proposal to recoup more than $2 million of building administration debt through a special assessment on the owners. Following the vote, Trump’s top Panamanian employee resigned — paving the way to overthrow Trump’s management company.
Eric Trump, who controls the management company along with Ivanka Trump and his father, disputed the investor and owner claims in an AP interview. He said at the time that the Trump Organization had no plans to sue the hundreds of American and foreign condo investors who comprise the owner’s association — including owners of hotel condominium units that remain under Trump’s control.
Trump Organization general counsel Alan Garten said Trump has no beef with the owners at-large but had to pursue its claim against them, anyway.
“Unfortunately, the only way for Trump to exercise its rights was to take the action that it did,” Garten said. He said the arbitration action was supposed to remain confidential, and whoever informed the AP would be liable “for substantial damages over and above what is claimed in the statement of claim.” Garten confirmed the legal filing and answered the AP’s questions about it.
Trump’s claim accused owners led by businessman Gary Lundgren of wrongfully firing Trump’s management company in violation of Panamanian law. The filing called Lundgren — the largest single owner of units in the building — a “soulless vulture.” The claim also raised numerous allegations of illegal behavior by Lundgren before conceding that “none of these allegations could be verified.”
At the heart of Trump’s claim is that Lundgren — an Alaska-born investor in Panama City real estate developments — stands to gain by removing Trump’s administrators. Garten said Lundgren told Trump that he intended to request that payments be made to a management firm run by his wife.
Lundgren told residents and the AP that his wife’s firm has not and will not request compensation for its work. In an email to the AP, Lundgren said it was hard to believe that “a man who claims that his net worth is $10 billion finds it necessary to sue a non-profit owners association, which he mismanaged into insolvency.”
Trump’s claim also takes aim at Sun International, the South African operator of a casino within the Trump Ocean Club, in addition to the at-large owners. Trump said Sun failed to meet contractual requirements that it would support Trump’s management company.
Representatives of Sun did not respond to emails or phone calls from the AP.
The claim comes at an awkward time for the building’s developer, Newland International. The company is still attempting to sell more than 200 hotel units under Trump’s control. Rosella Violi, a sales agent for Newland, said the company supports Trump and hopes for a quick and amicable resolution.
Trump’s claim came as unwelcome news to owners of condos in the building, setting off a sometimes heated debate in an owner’s forum over whether to fight back — or try to avoid further antagonizing Trump.
“I never thought this would happen,” said Al Monstavicius, a retired Nevada doctor who bought a hotel unit in the Trump Ocean Club in part because it would be under Trump’s control. “I thought it was pretty safe, because we had Trump involved.”
The Associated Press contributed to this article.
B. F. D.! Anything to make Trump look bad huh ?
WORKING HARD TO SEE MR. TRUMP SITTING IN THE OVAL OFFICE.
AN OLE US NAVY MUSTANG.
LUCKIE
Ever since it’s most recent surge in popularity with foreign investors of all types, the Republic of Panama has been experiencing huge problems with foreign investors and condo buyers, in that thanks to an arcane & intentionally double-layered real estate recording system many frauds have been perpetrated on the ever-growing number of foreigners buying properties there–it’s been chronic problem for a number of years now. The Trump operation, however, has been tightly incorporated in order to prevent condo buyers & other investors from becoming victims of this rampant problem. Thus, the swarm of fraudsters, thwarted in their attmpts to defraud the condo buyers-& especially Trump corporate & its investors–are furious & are crying wolf. Hopefully the American people–especially the voting public–will be provided with the real story & not these carefully crafted attempts to defame Trump.
Mrs Lauren. Do you know if Panama Equity real estate or Panama Sol real estate are involved in fraud? Do you know the name of the companies that are? This information would be helpful. I never heard anything about the companies I asked you about. Thank you.
Mr. Donald Trump is the none person on the panel that can make deal with other lender, And Trump can get the smart persons
on this plant, to work white him.
Just can’t wait to smear Donald Trup any way they can, Cilntonosi Mafia Hilda Hillary leading the smear, she should be in Prison for White Water Scandal, oh All witneses commited suiside i forgot that’s why she is still free. Running for President of United States.
I am voting for Trump for PRESIDENT!!
Finally a candidate that is not bought out, puts his money where his mouth is funding his own campaign without the PAC groups bribing the candidates!!
First time I am taking a real interest in presidential canditates because of Trump!!
He’s got the skill set we need and calls a spade a spade…
It’s about time we have someone to vote for and someone who will represent Real Americans not the ILLEGALS who are pushy and demanding!!
GO TRUMP!!!
Tim Smith
When Trump joined in for race of Presidency he had my vote! I waited to hear from other candidates what USA needed in a president to get America back and no one said anything that would get us there…..until Trump came along! Many thought I was only for him because he was a “STAR” but now they see I wasn’t and that they will vote for Trump also! WORD OF ADVICE to Trump….TELL people your tax plan in detail and how it will improve our economy! I DID hear from one of the main RNC guys (can’t remember his name but was on FBN) say the RNC would NOT have an outsider…..I think this is something we all need to look into, as they are saying our votes will not count???????