How Many Businesses Did Donald Trump Ruin Over Debts and Legal Disputes?

Despite popular opinion, Donald Trump did not ruin many businesses due to unpaid contractors. The legal process of Mechanics Liens ensures that such disputes are resolved. If a contractor isn't paid, they can file a Mechanics Lien. The lien remains until the debt is settled, and with an annual interest rate of 20%, it becomes difficult for non-paying clients to avoid these penalties.

Manipulating Work Volumes to Avoid Payment

Trump often only paid for the work that was actually done, refusing to reimburse for additional tasks that he deemed unnecessary or overpriced. This strategy was so effective that when companies tried to sue him for work not done, they often lost the case in court. Given these practices, it is unsurprising that only a handful of businesses out of more than 200 were significantly affected.

Resorting to Legal Strategies to Avoid Payment

Instead of directly addressing his debt issues, Trump preferred to invest heavily in legal strategies to avoid direct payment to his suppliers and service providers. This tactic has allowed him to retain control over his financial assets while managing creditor demands.

Specific Examples of Disputes

Many small and medium-sized businesses have faced significant challenges when doing business with Trump. These include:

Larry Walters: Contracted to supply drapes for Trump's hotel in Las Vegas. Trump demanded additional work and threatened legal action. Under pressure, Walters settled for a significantly reduced amount, just $380,000, less than what he said he was owed. Forest Jenkins: Secured a contract to install toilet partitions in Trump's Atlantic City casino. The casino soon filed for bankruptcy, leaving Jenkins with minimal compensation. Edward J. Friel: Supplied cabinets for slot machines at Trump's first Atlantic City casino. Trump refused to make the final payment, meaning Friel made no profit on the deal. Judith and Nicolas Jacobson: Owned a chandelier business and sold fixtures for Mar-a-Lago. Trump claimed the work was shoddy and refused to pay fully. Faced with long legal battles, the pair settled for an amount less than what they were due.

Major Debts and Loans

In addition to these lawsuits and disputes, Donald Trump is also involved in numerous major debts, including:

Debt to Vornado Realty Trust, amounting to $447 million as part of a partnership for towers in New York and San Francisco. Commercial mortgage-backed securities, totaling $257 million, part of which includes non-Trump loans. A debt to Deutsche Bank of up to $340 million. A total of $25 million in debt with four small banks and one asset manager. A $50 million loan secured against the Trump International Hotel and Tower in Chicago.

These large debts contribute to the overall financial picture of his business dealings and highlight the complex nature of his financial affairs.

Conclusion: Donald Trump's approach to managing business relationships often involved legal tactics rather than direct financial reserves. While he may have faced significant legal challenges, the mechanisms such as Mechanics Lien and strategic legal maneuvers allowed him to navigate these complex situations with relative ease.