Photo Credit: By Secondarywaltz (Own work), CC BY-SA 3.0 via Wikimedia Commons
The Supreme Court of Canada has written the latest chapter in the ongoing litigation by two Trump Tower investors against a Toronto development firm, its principals and U.S. President Donald Trump.
But the two court cases are far from over.
Back in 2006 and 2007, Sarbit Singh and Se Na Lee signed separate agreements to purchase units in the Trump International Hotel, to be built in the financial district in downtown Toronto. The developer, Talon International, marketed the units as profitable rental investments, and distributed a document called “Estimated Return on Investment” showing a hypothetical profit stream.
Like other investors, the buyers believed they would profit by participating in the hotel’s “Reservation Program.” Under this arrangement, the buyers would place their units in a common pool of rooms to be rented out at luxury rates. Even after deducting monthly expenses, the investors expected the venture would provide good returns of between 7.7 and 20.9 per cent.
Sadly, they were wrong.