In a unique mixture of political vengeance and sheer self-damaging stupidity, New York Mayor Bill De Blasio has decided to sever all contracts with the Trump Organization, a move that will cost the city about $30 million according to Eric Trump. The city’s contracts with the Trump family of companies are worth over $17 million per year according to De Blasio.
The timing is interesting as De Blasio is launching a legal attack on the Trump Organization that coincides with the physical attack on it in Chicago this morning.
— MSNBC (@MSNBC) January 13, 2021
A Flimsy Legal Argument to Sever a Contract
The legal argument of NYC’s attorneys to sever their contracts hinges on the “leadership of that company” being “engaged in criminal activity”.
“Inciting an insurrection against the U.S. government clearly constitutes criminal activity,” Mr. de Blasio said on MSNBC. “The City of New York will no longer have anything to do with the Trump Organization.”
That’s very shaky ground at best given that President Trump has not been (and likely will not be) found guilty of any illegal conduct. And besides that, Trump divested himself from control of the Trump Organization in 2017, something leftists have refused to accept. Therefore, this charge fails on it’s face in two ways: Trump is not guilty of criminal activity and even if he were: he is no longer in a “leadership” role in the Trump Organization and hasn’t been since 2017. In all likelihood this action will result in a financial windfall for the Trump organization, when they sue for breach of contract or force the city into arbitration.
Eric Trump Responds
Eric Trump, Executive Vice-President of the Trump Organization told MSNBC that New York City,
“has no legal right to end our contracts and if they elect to proceed, they will owe The Trump Org. over $30 million dollars. This is nothing more than political discrimination, an attempt to infringe on the first amendment and we plan to fight vigorously.”
In comments to the Associated Press regarding the overall business backlash, including the cancellation of the PGA tournament at Trump’s golf course, Eric told reporters,
“We live in the age of cancel culture, but this isn’t something that started this week. It is something that they have been doing to us and others for years,” said Trump, who along with his brother, Donald Jr., have been running the family company since their father took office four years ago. “If you disagree with them, if they don’t like you, they try and cancel you.”
The AP’s Bernard Condon went on to write that Eric didn’t seem overly concerned, “unruffled but combative as he spoke by phone from his office in Trump Tower. He dismissed the hits as no big threat to a company that has minimal debt –$400 million against billions in assets – and can always tap its vast real estate holdings for cash, not to mention the allegiance of those sticking by the president.”
The younger Trump seeming to channel his father, made it very clear that New York’s petty socialist dictator is punching way above his weight class, and that New York’s taxpayers will pay the price to sever their agreements.