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ARTICLE · 16 FEBRUARY 2017

Trump's Golf Club Ordered To Pay $5.7 Million To Former Members

Devry Smith Frank LLP
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A federal judge from the U.S. District Court has ruled that a golf club owned by Donald Trump must pay $5.7 million to 65 former members who had been denied membership refunds.

CanadaLitigation, Mediation & Arbitration
Devry Smith Frank LLP
Devry Smith Frank LLP
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A federal judge from the U.S. District Court has ruled that a golf club owned by Donald Trump must pay $5.7 million to 65 former members who had been denied membership refunds. The former members were claiming that they had refundable memberships under their agreement with the previous owner.

The golf club in question, Trump National Golf Club, located in Jupiter, Florida, was purchased by Donald Trump for $5 million in 2012. Trump's company acquired the club for below market value, but in doing so, also took on the potential liability of having to refund $41 million in refundable membership deposits.

When Trump purchased the golf club, the 65 members in this class action lawsuit were on a resignation waiting list. Under the terms of their contract with the golf club, members could not resign their membership until a replacement member was found. While on this waiting list, members still had to pay their membership dues, but had access to the club. Membership dues

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