Donald Trump Appeals $454 Million Civil Fraud Judgment in New York Court

Appeals court judges question the necessity of a $454 million civil fraud judgment against Donald Trump, signaling a potential reversal or reduction.

At a Glance

New York appeals court considers overturning or reducing Trump’s $454 million civil fraud judgment
Judges express doubts about the size of the penalty and the extent of harm caused
Trump’s lawyers argue the lawsuit stretches consumer protection laws and involves no victims
A decision from the appeals court could come before Election Day, November 5
The case stems from allegations that Trump inflated his net worth on financial statements

Appeals Court Scrutinizes Trump’s Civil Fraud Judgment

In a surprising turn of events, Donald Trump’s appeal against a $454 million civil fraud judgment is receiving a more sympathetic hearing in a New York appeals court. The five-judge panel, tasked with reviewing the case, has raised questions about the necessity and proportionality of the substantial penalty imposed by Judge Arthur Engoron in the initial trial.

The appeals process, which requires agreement from at least three out of five judges to alter the outcome, has shed light on potential flaws in the original ruling. One judge described the penalty as “troubling,” while another questioned whether the state’s actions constituted “deterrence” or “mission creep.”

A New York appeals court questioned whether the state’s civil fraud case against Donald Trump properly applied the law—and whether the $489 million penalty against the former president was too high https://t.co/opBEKv3W3B https://t.co/opBEKv3W3B

— The Wall Street Journal (@WSJ) September 26, 2024

Trump’s Legal Team Mounts Strong Defense

Trump’s lawyers argued vehemently for reversing the conviction, pointing out the absence of discernible victims or formal complaints. They contend that the lawsuit stretches consumer protection laws beyond their intended scope and that some allegations should be barred by the statute of limitations.

“The case, Sauer said, ‘involves a clear cut violation of the statute of limitations.'”

The crux of the case revolves around allegations that Trump inflated his net worth on financial statements to secure favorable deals and loans. Trump’s legal team disputes these claims, arguing that the valuation of properties, such as Mar-a-Lago, was mishandled in the initial trial.

Massive civil fraud verdict against Trump gets frosty reception at New York appeals court https://t.co/TGCuRzHSh4

— POLITICO (@politico) September 26, 2024

State’s Arguments and Judges’ Concerns

New York’s Deputy Solicitor General defended the judgment, arguing that it represents a claw back of fraudulent proceeds rather than a penalty. The state maintains that Trump’s actions had a public impact and posed undue risk to lenders.

“That is an enormous benefit that they got from the misconduct, and it is not an excuse to say, ‘well, our fraud was really successful, so we should get some of the money,'” Vale argued

However, the appeals court judges expressed skepticism about the extent of harm caused and questioned whether the attorney general’s office was overreaching. They sought clarification on the application of the law and the proportionality of the penalty to any actual damages incurred.

Potential Outcomes and Future Steps

As the legal battle unfolds, the implications of this case extend beyond the courtroom. Trump has posted a $175 million bond to halt collection of the judgment during the appeal process. If the judgment is upheld, he will be required to pay; if overturned, he will recover the bond money.

The decision from the appeals court could arrive before Election Day, November 5, potentially influencing the political landscape. Regardless of the outcome, both sides have the option to appeal to the state’s highest court, with Trump vowing to fight the verdict up to the U.S. Supreme Court if necessary.

“In the past, Trump has decried the lawsuit’s outcome as ‘election interference’ and accused Engoron of punishing him for ‘having built a perfect company.'”

As the appeals process continues, the focus remains on whether the court will uphold, reduce, or overturn the substantial civil fraud judgment against Donald Trump. The outcome of this case could have far-reaching consequences for both Trump’s financial future and the broader landscape of business practices and legal accountability in New York.