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The Trump Organization sued New York City after the mayor cancelled all contracts following the Capitol siege

Jun 22, 2021, 07:27 IST
Business Insider
Then President-elect Donald Trump boards the elevator at Trump Tower in New York City on January 16, 2017. DOMINICK REUTER/AFP via Getty Images
  • The Trump Organization sued NYC over terminated contracts with the company following the Capitol riot.
  • Mayor Bill de Blasio cancelled all contracts in January because he said Trump "incited a rebellion against the US."
  • The Trump Organization operates the Central Park Carousel, two Central Park ice rinks, and the Ferry Point golf course.
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The Trump Organization sued New York City on Monday, claiming the city wrongfully terminated contracts with the company in the wake of the Capitol riots.

Mayor Bill de Blasio announced on January 13 that the city would end all business contracts with former President Donald Trump's company, saying at the time that Trump "incited a rebellion against the United States government that killed five people and threatened to derail the constitutional transfer of power."

"The City of New York will not be associated with those unforgivable acts in any shape, way or form, and we are immediately taking steps to terminate all Trump Organization contracts," de Blasio continued at the time.

The Trump Organization operated two ice skating rinks in Central Park, the Central Park Carousel, and the Trump Golf Links at Ferry Point. The operations brought in about $17 million a year for the company.

On Monday, the Trump Organization said in a statement the city had "no right" to cancel the contracts, saying de Blasio's actions were "purely politically motivated, have no legal merit, and are yet another example of the mayor's efforts to advance his own partisan agenda and interfere with free enterprise."

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The Trump Organization's contracts in Central Park were set to expire in early 2021, but the Ferry Point golf course contract was due to expire in 2032.

"There can be no dispute that we are not just meeting, but exceeding our obligation to operate a first class, tournament quality daily fee golf course," the Trump Organization's statement said, citing a report by ABC News.

A spokesperson for the New York City Law Department told ABC News that the city "will vigorously defend the City's decision to terminate the contract," saying Trump's actions on January 6 "caused a breach of the Ferry Point contract by eliminating options for hosting championship events."

A City Hall spokesperson also placed blame on the former president, saying he "interfered with basic democracy when he incited a deadly insurrection at the US Capitol."

"You do that, and you lose the privilege of doing business with the City of New York," City Hall spokesperson Bill Neidhardt told ABC News. "It's as simple as that."

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