Trump sues Deutsche Bank over Chicago tower

Donald Trump is seen at the Trump International Hotel and Tower Dubai party in the Bel Air section of Los Angeles August 23, 2008. REUTERS/Mario Anzuoni

NEW YORK (Reuters) - Luxury hotel and resort developer Donald Trump sued Deutsche Bank and several other banks on Monday, demanding $3 billion in damages, claiming they broke agreements in the construction and financing of Trump International Hotel and Tower in Chicago.

The unfinished 92-story complex that would be the second-tallest building in the United States behind Chicago’s Sears Tower was due for completion in mid-2009.

Trump has been trying to extend a $640 million construction credit from a group of lenders led by Deutsche Bank, The Wall Street Journal reported last Friday.

They include a unit of Merrill Lynch & Co, Union Labor Life Insurance Co, real-estate investment trust iStar Financial Inc, and a division of Highland Capital Management LP.

All were identified among more than two dozen defendants in Trump’s lawsuit filed in New York State Supreme Court in the New York City borough of Queens.

Deutsche Bank spokesman John Gallagher declined to comment on the lawsuit.

“We have filed a lawsuit that clearly outlines the bad conduct of Deutsche Bank in connection with Trump Tower in Chicago and we believe the court will clearly vindicate our position,” said Trump’s lawyer, Steven Schlesinger.

“The fact that the bank group are acting in a dysfunctional manner in connection with big loans is a sign of the times,” the lawyer said.

Reporting by Grant McCool, editing by Matthew Lewis