Cohen v. Trump

200 F. Supp. 3d 1063, 2016 WL 4098221, 2016 U.S. Dist. LEXIS 101247
CourtDistrict Court, S.D. California
DecidedAugust 2, 2016
DocketCase No.: 3:13-cv-2519-GPC-WVG
StatusPublished

This text of 200 F. Supp. 3d 1063 (Cohen v. Trump) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cohen v. Trump, 200 F. Supp. 3d 1063, 2016 WL 4098221, 2016 U.S. Dist. LEXIS 101247 (S.D. Cal. 2016).

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT OR, IN THE ALTERNATIVE, PARTIAL SUMMARY JUDGMENT

[ECF No. 180]

Hon. Gonzalo P. Curiel, United States District Judge

Before the Court is Defendant Donald J. Trump’s (“Defendant”) motion for summary judgment. Defendant’s Motion..for Summary Judgment, or in the Alternative, Partial Summary Judgment (“Def. Mot.”), ECF No. 180. The motion has been fully briefed. See Plaintiff’s Response in Opposition to Defendant’s Motion for Summary Judgment, or in the Alternative, Partial Summary Judgment (“PI. Resp.”), ECF No. 220; Defendant’s Reply in Support of Motion for Summary Judgment or, in the Alternative, Partial Summary Judgment (“Def. Reply”), ECF No. 248. A hearing op the motion was conducted on July 22, 2016. ECF No. 268.

Upon consideration of the moving papers, oral argument, and the applicable law, and for the following reasons, the Court DENIES Defendant’s motion.

FACTUAL BACKGROUND

A. Defendant Donald J. Trump

Defendant is a real estate magnate, television personality, and author. In 2004, Defendant helped found Trump University (“TU”), a private, for-profit entity offering real estate seminars and purporting to teach Defendant’s “master strategies” for real estate success. PI. Resp., Ex. E, at 242, 244-50; see also id. at 191-241. TU began with web-only content in 2005, and shifted to live events in 2007. Plaintiffs Response to Defendant’s Separate Statement of Undisputed Facts ¶ 13 (“PI. SSUF”), ECF No. 220-10; Trump Dep. 193:12-18, Def. Mot., Ex. 2.1

For TU’s live events, consumers were first invited to a ninety-minute Free Preview, which was preceded by an orchestrated marketing campaign using mailed invitations and TU website, radio, and newspaper advertising. See PI. Resp., Exs. E-F. For example, consumers were sent “Special Invitation[s] from Donald J. Trump” which included a letter signed by Defendant that stated “[m]y hand-picked instructors and mentors will show you how to use real estate strategies.” PI. Resp., Ex.- F. Newspaper advertisements displayed a large photograph of Mr. Trump, stating “[l]earn from Donald Trump’s handpicked expert,” and quoted Mr. Trump as saying: “I can turn anyone into a successful real estate investor, including you.” PI. Resp., Ex. E, at 191-207, Similar[1066]*1066ly, other advertisements displayed large photographs of Mr. Trump and included statements such as “Learn from the Master,” “The next best thing to being his Apprentice,” and “Nobody on the planet can teach you how to make money in real estate better than I can.” PI. Resp., Ex. E, at 242, 244-50; Ex. T, at 321-22. Further, TU advertisements utilized various forms of recognizable signs associated with accredited academic institutions, such as a “school crest” used on TU letterhead, presentations, promotional materials and advertisements, see PI. Resp., Exs. E, F, I, L, P, as well as language comparing TU with such institutions, see Main Promotion Video, PI. Resp., Ex. L (“We’re going to teach you better than the business schools are going to teach you and I went to the best business school.”); TU Marketing Guidelines, PI. Resp., Ex. P, TU-DON-NELLY0000016-17 (describing the “Trump University Community” as including “Staff,” “Faculty,” “Instructors,” and “Program Directors (Trump University’s Admissions Department)”; including under “Catch Phrases/Buzz Words” “Ivy League Quality,” and under “Tone” “Thinking of Trump University as a real University, with a real Admissions process—i.e., not everyone who applies, is accepted”; and encouraging TU employees to “[u]se terminology such as” “Enroll,” “Register,” and “Apply”). .

Plaintiffs have provided evidence that Defendant reviewed and approved all advertisements. Trump Dep. 279:18-280:16, PL Resp., Ex. D; Bloom Dep. 73:3-74:2, PI. Resp., Ex. H:

At the beginning of each Free Preview, a promotional video was played in which Defendant stated:

We’re going to have professors and adjunct professors that are absolutely terrific. Terrific people, terrific brains, successful .... The best. We are going to have the best of the best and honestly if you don’t learn from them, if you don’t learn from me, if you don’t learn from the people that we’re going to be putting forward—and these are all people that are handpicked by me—then you’re just not going to make in terms of the world of success... .we’re going to teach you better than the business schools are going to teach you and I went to the best business school.

Main Promotion Video, PI. Resp., Ex. L.

Individuals were then invited to attend a $1,495 Fulfillment Seminar. Compl. 15, ECF No. 1. Those who paid for the Fulfillment Seminar were allegedly promised a three-day seminar and one year of expert interactive support. Id. at 20.

After the Fulfillment Seminar, individuals were invited to sign up for the Trump Elite Program for up to $34,995. Id. Elite Program participants were allegedly promised unlimited mentoring for an entire year. Id. at 21.

B. Plaintiff Art Cohen

Plaintiff Art Cohen (“Plaintiff’) is a businessman and resident of the state of California. Compl. 4. Plaintiff alleges learning about Trump' University from a 2009 San Jose Mercury News advertisement. Id. Plaintiff alleges receiving a “special invitation” by mail to attend a Trump University seminar. Id. Drawn in by Defendant’s name and reputation as a real estate expert, Plaintiff attended a free preview event. Id. Plaintiff then paid $1,495 to Trump University to attend a three-day real estate retreat, where he subsequently purchased a “Gold Elite” program for $34,995. Id. at 5.

Plaintiff avers that he would not have paid for any of the TU programs had he known that Defendant had not handpicked the TU instructors, and/or that TU was not a “university.” Id.; see also Cohen Dep., 150:9-151:17, 151:20-152:9, Def. Mot., Ex. 10.

[1067]*1067PROCEDURAL BACKGROUND

On October 18, 2018, Plaintiff filed a complaint alleging a single cause of action for mail and wire fraud in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1962(c). Compl. On the same day, Plaintiff filed a “notice of related case” requesting that the case be transferred to the undersigned Judge because the present action is related to Low v. Trump University, LLC, No. 10-cv-940-GPC-WVG. ECF No. 3.2

On February 21, 2014, the Court denied Defendant’s motion to dismiss. ECF No. 21. On November 27, 2014, the Court granted Plaintiffs motion for class certification. ECF No. 58. The Court noted that Plaintiffs “theory of recovery under RICO is that Defendant committed ‘fraud and racketeering by marketing Trump University ‘Live Events’ as an institution with which he was integrally involved as well as ‘an actual university with a faculty of professors and adjunct professors.’ ” Id, at 5-6 (citation omitted). The Court certified the following class:

All persons who purchased Live Events from Trump University throughout the United States from January 1, 2007 to the present.3

Id. at 22-23.

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Bluebook (online)
200 F. Supp. 3d 1063, 2016 WL 4098221, 2016 U.S. Dist. LEXIS 101247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cohen-v-trump-casd-2016.