Settlements Bar Tenant’s Claims Against Trump

     MANHATTAN (CN) – Donald Trump is mostly shielded from liability in a lawsuit filed by a tenant of the Trump Building on Wall Street, a New York appellate division ruled.




     John Bostany sued 40 Wall Street and the Trump Organization, alleging breach of lease, negligence for mold, restitution, eviction and other claims.
     The justices of the 1st Appellate Division ruled that because Trump Organization signed the lease, on behalf of 40 Wall, and because its employees took care of the building, the company is liable for the alleged torts.
     “However, since Trump’s liability is predicated on a theory of apparent or ostensible agency, it is entitled to the benefit of the settlement agreements entered into by plaintiff and defendant 40 Wall, to the extent such agreements serve as a bar to plaintiff’s claims,” the justices wrote.
     Those settlements prohibit Bostany from seeking damages over conduct that occurred before July 5, 2005, or from his inability to use any portion of the building before April 2, 2007.
      “Since plaintiff alleges he was fraudulently induced to sign the October 6, 2004 lease based on conduct occurring prior to July 5, 2005, the cause of action for fraud against both defendants should have been dismissed as barred by the July 5, 2005 settlement agreement,” the ruling states.
     Nine other causes of action are similarly barred under the settlements, the court ruled, though it said Bostany can still seek damages “broader than a mere loss of space (such as damages to computers, important papers, etc.).”

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