Deep Dive: Donald Trump’s Long History of Lawsuits

TRUMPS’ REAL ESTATE LAWSUITS

Before becoming an entertainment mogul and politician, Donald Trump began his career in 1968 at his father’s New York-based real estate company. He became the company’s president 3 years later, naming it The Trump Organization. In his time as president of his business, he supervised many real estate bids, purchases, and projects— many of which involved lengthy legal battles at the federal, state, and civil level.

Here are some of the noteworthy cases Trump fought as a real estate mogul:

1973 – 1975: United States v. Fred C. Trump, Donald J. Trump & Trump Management, Inc.

During the 70’s, the primary business projects of the Trump Organization involved constructing and renovating hotels, skyscrapers, and apartments in New York City. Actions that were allegedly performed at some of these properties resulted in a civil rights case against Trump, his father, and their business, with the United States Justice Department Civil Rights Division as the prosecution.

This particular lawsuit was filed in federal court instead of state or civil court. This is due to the fact that it involved accusations of violating civil rights law, making it a federal issue. In particular, the plaintiff claimed the Trump Organization violated The Fair Housing Act of 1968, which prohibits “landlords and real estate companies” from “[making] housing unavailable to persons” based on factors such as their race, religion, disabilities, and similar criteria.

According to an article in the New York Timesfrom the year in which the suit was filed, the U.S Justice Department claimed that the Trump Organization violated The Fair Housing Act because they “required different rental terms and conditions because of race,” in addition to “[misrepresenting] to blacks that apartments were not available.” According to official court documents, Trump denied any discriminationand his lawyer Roy Cohn moved to dismiss the case due to a lack of substantial evidence. Furthermore, he also filed a counterclaim based on damage to Trump’s reputation due to the above New York Times article, requesting $100 million from the U.S. government in damages.

Winner: Draw

This case was settled two years later. As part of the settlement, the Trump Organization was required to submit lists of apartment vacancies to local civil rights organization the New York Urban League. According to another New York Times article, the goal of this action was to enable the league to “provide qualified applicants for every fifth vacancy in those Trump buildings where blacks… occupy fewer than 10 percent of the apartments.” Since this settlement didn’t imply any guilt on the part of Trump or his business but did require his company to take action to encourage more diverse tenants, it can essentially be considered a draw.

1982 – 1986: Tenants of 100 Central Park South v. Donald J. Trump & Park South Associates

One of the many New York real estate business ventures that built Trump’s reputation involved a 14-story apartment complex at 100 Central Park South. Now renamed Trump Parc East, this used to be a rent-controlled property, which meant there were many tenants living there who paid far below the average rental costs for that area. Naturally, this isn’t an ideal situation for a landlord to be in— especially if they’re interested in renovating the entire property to increase its value, as Trump was.

Image Source: Zillow

CNNMoney outlines the lengthy legal battle that ensued over this conflict of interest based on researching the 2,895 different court documents involved in the case. Starting with his purchase of the property in 1981, tenants allege that Trump did everything in his power to force rent-controlled tenants to move. A 1985 New York Times article outlines some of the different tactics the 60-odd tenants claimed Trump engaged in, which included:

• Threatening to demolish the property
• Suing individual tenants in civil court
• Limiting important services like water and heat
• Neglecting to fix issues with plumbing and water damage
• Hiring spies to gather tenants’ personal information
• “Engaging in a psychological tug-of-war to wear the tenants down”

One of Trump’s alleged schemes to vacate tenants is outlined in another New York Times article from 1983. Dripping with sarcasm, this piece describes how Trump planned on temporarily filling vacant apartments with New York’s homeless— seemingly in the hopes of scaring away the other tenants. However, the Human Resources Administration rejected his Machiavellian offer, saying that it “left [them] with an uncomfortable feeling.” This bizarre episode was also included in the tenants’ legal complaints.

Winner: Tenants

Although Trump would claim victory in his autobiography and in future conversations about the affair, it appears plain as day that the tenants were the real winners. As a 1986 New York Timesarticle describes it, a settlement was reached between both parties that ended all litigation. The tenants were allowed to continue living in the building with their controlled rent, and Trump would instead be renovating the existing structure instead of demolishing it. Trump also ended up paying out $550,000 to the tenants’ attorneys. Obviously, this sum isn’t a big deal to a billionaire; however, it’s a concession that can definitely be seen as an admission of defeat.