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Archive for Thursday, December 15, 2005

Donald Trump sued by real estate brokers

December 15, 2005

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— Donald Trump is being sued for $1.3 million by three real estate brokers who say he has failed to pay them in full after the profitable sale of land and apartments he owned on the former West Side Manhattan rail yards.

The lawsuit centers on Trump's sale of 77 acres of riverfront and three buildings to the Extell Development Corp. and Carlyle Group for $1.8 billion. Parties to the October deal said it was the biggest residential sale in the city's history.

Barbara Corcoran and two of her brokers say in the lawsuit that they have a contract that set the terms of their compensation from the sale. The contract, their court papers say, called for Trump to pay them $4 million in commissions - a $2 million base commission for arranging the financing to develop the properties and a $2 million percentage commission after the properties' sale.

Trump paid his clients - Corcoran, Carrie Chiang and Susan Cara-Madden - $2.7 million, leaving $1.3 million due.

Trump replied Wednesday that he does not owe the brokers any money - yet. "The agreement is very clear," Trump said. "I only pay them when I get paid. We haven't gotten the money yet. For her to bring a lawsuit against me is insane."

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