Developer of Trump Tower in Toronto faces class action lawsuit
10/03/2017 23:07
TORONTO, March 10 (Reuters) - A class-action lawsuit seeking
the return of deposits has been launched against the developer
of a downtown Toronto hotel bearing the name of U.S. President
Donald Trump, the lawyer who won an earlier test case for
disgruntled investors said on Friday.
The lawsuit filed against Talon International Inc TALN.PK
in the name of Ashleka Persaud can be joined by as many as 210
other purchasers who paid deposits to buy hotel units in the
tower but did not close their transactions, the filing said.
A lawyer for Talon was not immediately available to comment.
The Trump International Hotel & Tower has been beset by
troubles since opening its doors in 2012, and ownership of the
tower itself looks set to fall to its main debt holder after a
court-run sale process received no bids last month. urn:newsml:reuters.com:*:nL1N1FU2CD
Talon, which licensed the Trump brand and hired a
Trump-owned company to manage it, was ordered in October to pay
damages to one buyer for "negligent misrepresentation" and for
another sale to be rescinded. urn:newsml:reuters.com:*:nL1N1CK01G Those buyers were
represented by Mitchell Wine, the same lawyer handling the new
case.
The Supreme Court of Canada earlier this week dismissed
Talon's request for it to hear an appeal of the lower court
ruling.
The expansion of similar payouts to all buyers of the
tower's hotel units, which were placed into a pool of rooms to
be rented out at luxury rates, could amount to a total of C$25
million, the filing said.
The case is: Persaud v Talon; Ontario Superior Court of
Justice file no: CV-17-569023-00CP
(Reporting by Alastair Sharp; Editing by Jonathan Oatis)
((alastair.sharp@reuters.com; +1 416 941 8118; Reuters
Messaging: alastair.sharp.thomsonreuters.com@reuters.net))
Keywords: CANADA TRUMP/TORONTO