A federal judge from the U.S. District Court has ruled that a golf club owned by Donald Trump must pay $5.7 million to 65 former members who had been denied membership refunds. The former members were claiming that they had refundable memberships under their agreement with the previous owner.

The golf club in question, Trump National Golf Club, located in Jupiter, Florida, was purchased by Donald Trump for $5 million in 2012. Trump's company acquired the club for below market value, but in doing so, also took on the potential liability of having to refund $41 million in refundable membership deposits.

When Trump purchased the golf club, the 65 members in this class action lawsuit were on a resignation waiting list. Under the terms of their contract with the golf club, members could not resign their membership until a replacement member was found. While on this waiting list, members still had to pay their membership dues, but had access to the club. Membership dues ranged between $8,000 and $20,000 per year, plus a $1,800 food and beverage fee.

That all changed when Trump's company took over the club.

Trump informed members on the resignation list shortly after his purchase that if they didn't withdraw their resignation request, they would not be allowed access to the club. However, they would still be expected to pay their dues until they reached the top of the resignation list.

The lawsuit stemmed from the complicated resignation process, put in place by former owner, Ritz-Carlton, that could leave members waiting up to 10 years to have their membership deposits refunded. "First, resigning members had to request to be added to a waiting list in their membership classification. After every fifth membership Ritz-Carlton sold in one classification, the person at the top of that resignation list would get their deposit refunded and be removed from the club rolls."

As a result of the ruling, each former member was awarded their deposit plus interest. The membership deposits ranged from $35,000 to $210,000.

Even Trump's son, Eric Trump, who oversaw the club's operation, admitted to the court that paying dues without having access to the club "would violate a fundamental principle of life."

However, the Trump Organization says that it respectfully disagrees with the Court's decision and will be appealing it.

Since the decision was released, it has garnered a lot of media attention. This is because it is the first decision involving Trump and his organizations made by a U.S. court since Trump became President. According to a report from the BBC during the election campaign, Trump and his organization are said to be involved in about 75 active lawsuits.

While the courts are considered independent of the executive branch, the decision serves as reassurance to the American people that the courts can still be considered impartial in dealing with lawsuits brought by and against the President of the United States and his organizations.

In an interesting footnote to his decision, U.S. District Court Judge Kenneth Marra apologized to Trump for not referring to Trump as President in his ruling. "At all times relevant to this lawsuit, Donald J. Trump was a private citizen. As a result, the Court will refer to him as such in this decision. In doing so, the Court means no disrespect to him or to the esteemed position he now holds," Marra wrote.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.