A lawsuit alleging that Donald Trump and a real estate development firm misled investors, has been upheld by Canada’s highest court.
Sarbjit Singh and Se Na Lee alleged they were sold units in Toronto’s, Trump International Hotel, under false pretences.
The pair claimed they were misled to believe their investments would see returns ranging from 7.7 per cent to 20.9 per cent. Instead, they said they lost a combined C$1.2m (£732,810).
“Both believed that buying into the Trump project would be an excellent investment,” Justice Rouleau said. “And in time, both came to realise that they were wrong.”
The 65-storey tower in Toronto’s financial district includes both hotel rooms and private residences. It is managed by The Trump Organisation.
The “cornerstone” of the plantiffs’ claims, Justice Rouleau said, was a document that was presented to each of them outlining the “estimated return on investment”.
Both Mr Singh and Ms Lee said they relied heavily on the estimates provided to them in making their individual decisions to purchase their respective properties.
But “as it turned out, the estimates bore no relation to financial reality. The motions judge found as a fact that the estimates were ‘deceptive documents’ and ‘replete with misrepresentations of commission, of omission, and of half-truth’,”Justice Rouleau said.
The Ontario Court of Appeal ruled in favour of the investors, ordering that the sale of the unit must be rescinded for Singh and damages must be paid to Lee for “negligent misrepresentation”.
