Posted on March 23 2018
In January 2018, Ithaca Capital, the “new”owners of Trump’s Ocean Club-Panama Hotel filed a federal lawsuit against Trump Panama Hotel Management & Trump International Hotel Management in US SDNY.
At the core of Ithaca’s lawsuit, is what’s become a predictable pattern for Donald J Trump, a now proven vexatious litigant. Trump asserted that his Companies had a right to adjudicate via Arbitration in the International Court of Arbitration. No I’m not making that up.
What I find spectacularly ironic is Trump Panama Hotel, was Donald Trump’s first International Hotel venture. Purportedly earning Trump between $30 million to $50 million. The symmetry is just exquisite.
I pulled out some noteworthy nuggets of Ithaca Capital’s Filing. To say the relationship between Trump & Ithaca is acrimonious, perhaps an understatement. At a certain point in the filing you can literally feel the frustration.
Perhaps the best qoute in this Filing: “In other words: Trump is being Trump”the precursor to that qoute is Ithaca Capital carefully explained Trump is a: bully, fraud and threatens arbitration and protracted litigation.
Link to original complaint here Jan 2018 Trump Panama Lawsuit
Ithica Capital Argued in their lawsuit;
- …”baseless fraud and conspiracy claims that entirely lack merit and have already been rejected by the Panamanian courts.”
- In other words, Trump is being Trump.
- “Trump cannot bring its claims against Plaintiffs in the Arbitration because there is no agreement to arbitrate in the Bulk Sale Agreement”
- Trump is unable to defend against the claims of mismanagement
- Trump’s only apparent defense is to deflect focus from the actual issues – Trump’s mismanagement of the Trump Panama Hotel and the termination of its management agreement
- “having lined its pockets with ill-gotten management fees”
- “This decline in occupancy has had and continues to have a direct impact on the hotel’s bottom line. The resulting decline in revenues has been particularly precipitous in the past two years.”
Late yesterday afternoon, after 2 hours of oral arguments Judge Ramos, ordered an injunction which blocks the Trump entities to pursue arbitration and regaining control over the now failed Trump Panama Hotel. Here’s a CNBC article citing the Judge’s rulingJudge Rules Against Two Trump entities
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