Golf club owned by Trump to settle suit

Former members sued over deposits

A golf club in Jupiter owned by President Donald Trump has agreed to pay $5.45 million to settle claims from former members who said they were wrongfully denied refunds of their deposits.

A class-action lawsuit alleged Trump National Golf Club in Jupiter violated contract terms 65 members had signed with previous owner Ritz-Carlton.

“We proved the case at trial and then achieved a settlement in excess of the total loss to the class,” Brad Edwards, a lawyer for the former members, wrote in an email.

A federal judge ruled against the golf club in February 2017. Lawyers for the club, who couldn’t be reached for comment Monday, had vowed to appeal the ruling.

The case involved Trump’s business dealings before he was elected president. While Trump wasn’t named as a defendant in the lawsuit, he played a key role in the case as the leader of the company that owned the golf club.

The settlement stands in contrast to Trump’s rhetoric on the campaign trail. He bragged, “I don’t settle,” when it came to

lawsuits filed against his businesses.

The settlement requires the Trump Organization to pay 94 percent of the total judgment ordered by the federal judge. After deducting expenses and attorneys fees, the class-action members will receive 71 percent of their refunds.

The agreement still must receive final approval from the courts, according to the settlement.

The legal dispute centers on the former Ritz-Carlton club in Jupiter that Trump took over in 2012.

Prior to Trump buying the club, some members there had paid between $35,000 and $210,000 each for refundable club deposits to join.

Under the old rules, members on the resignation list could continue playing golf while the club searched for their replacements. When their replacement was found, they would receive their deposit and stop paying dues.

But when Trump took over, he barred them playing golf or accessing the club if they remained on the resignation list, according to the lawsuit.

Judge Kenneth Marra ruled that the golf club had therefore revoked the memberships, entitling them them to refunds of their deposits within 30 days.

After being elected president, Trump said he would turn over operations to his golf clubs and other businesses to his two adult sons and a business executive.