Trump golf club loses suit over memberships

The Trump National Golf Club, formerly led by President Donald Trump, on Wednesday lost a legal fight. Dozens of disgruntled members say they were charged thousands while not being allowed to play.

A federal judge ruled that the club in Jupiter should pay $5.8 million to people who argued that while waiting for membership deposit refunds, they were charged annual dues and fees — even though they were barred from using the golf course, restaurant, spa and other amenities.

Barring people still paying fees from using the club “revoked or canceled their memberships” and entitled them to refunds within 30 days, according to U.S. District Judge Kenneth Marra’s ruling.

The judge also wiped out any fees and other club charges that had accrued since Dec. 31, 2012, for those who were part of the lawsuit.

The ruling comes after a 3 1⁄2 year

legal fight, which started when the leader of the golf club was a real-estate-mogul-turned-reality-TV-star who had not yet launched his run for president.

“Our clients are very excited,” said attorney Seth Lehrman, who represents the club members who filed suit. “It’s been a long time coming for them.”

The Trump National Golf Club plans to appeal the ruling, the club’s attorney Herman J. Russomanno III said.

Trump took over the former Ritz-Carlton golf club in 2012.

Before Trump’s company bought the club, some members had paid between $40,000 and $200,000 each for refundable club deposits to join.

Before Trump took over, members who said they wanted to quit the club were allowed to pay dues and keep using club facilities while they waited for enough new members to join and take their spots. When their deposits were refunded, they would then stop using the club and stop paying dues.

That policy changed under Trump, and the dues kept accruing for those who resigned their memberships, according to testimony during the trial. At the same time, they were blocked from using the club while still on the refund waiting list.

During a hearing in August, Trump’s son Eric Trump testified that the club had been on the verge of closing before his father’s company invested about $25 million upgrading the golf course, adding a ballroom and making other improvements.

To try to lower the club’s debts after he took over, Donald Trump offered members willing to forfeit their deposits the chance to pay reduced yearly fees and to also have access to other Trump properties, including the Mar-a-Lago Club in Palm Beach.

While Donald Trump wasn’t named as a defendant in the lawsuit, as leader of the club and the company that owned it, he played a key role in the case. He provided videotaped

Dues kept accruing for those who resigned their memberships, while at the same time being blocked from using the club.

testimony during last year’s trial over the lawsuit.

The Trump Organization, which owns the golf club and handles Trump properties, issued a statement Wednesday saying company representatives “respectfully disagree with the Court’s decision” and plan to appeal.

“The plaintiffs were all members under Ritz Carlton who resigned before Trump purchased the Club. At the time Trump purchased the Club, it was suffering financially, making it unlikely that these members would ever get back their deposits,” the Trump Organization statement said. “At trial, we presented overwhelming evidence that the plaintiffs’ memberships were never recalled and that the plaintiffs had waived this argument during the course of the litigation.”

Norman Hirsch, of Juno Beach, is one of the people who filed the lawsuit. “How can you possibly think it was fair to charge us when [we] weren’t even allowed in the club?” he asked.

Talk of an appeal is common in the wake of a ruling and could change after the Trump Organization has more time to consider the outcome, Lehrman said.

“The Trump organization and President Trump are committed to the rule of law,” Lehrman said.

After being elected president, Trump said he would turn over control of his business interests to his two adult sons and a business executive.