Trump Sues Conseco for $1B

Donald J. Trump, the real estate tycoon, has brought a $1 billion lawsuit against Conseco -- seeking actual damages in excess of $500 million and punitive damages of $500 million -- alleging a breach of agreement to sell Conseco's interest in The General Motors Building in New York City to Mr. Trump. The Trump Organization said the building was purchased in July 1998 by Trump and Conseco, as partners, from Corporate Property Investors. Mr. Trump ultimately agreed to buy Conseco's interest in the General Motors Building, under a July 3, 2001 written agreement, with a closing scheduled for Sept. 15. Meanwhile, Mr. Trump had arranged financing from Deutsche Bank. After Sept. 11, Conseco "wrongfully refused to extend the closing date" beyond Sept. 15, asking for a purchase price of $500 million, an amount that Trump alleges is "hundreds of millions of dollars more than the July 3 purchase price which Conseco agreed to accept." Conseco said Mr. Trump was unable to arrange financing and a guarantee acceptable to Conseco, so under the agreement Mr. Trump was offered the choice of selling his interest in the building to Conseco for $15 million or buying Conseco's interest for about $500 million. A Conseco spokesman termed a Trump news release on the suit "bad fiction" and said Mr. Trump would have to "live by the agreement." Conseco said the suit will be settled out of court due to an arbitration provision.