Trump Challenges Massive $489M Judgment in New York Court

Person at a rally with Make America Great Again signs.

Donald Trump’s legal team appeals a $489 million civil fraud judgment, arguing the penalty is excessive and legally flawed.

At a Glance

Trump’s lawyers urge a New York appeals court to overturn the $489 million civil fraud ruling
The judgment is characterized as “draconian” and based on flawed legal reasoning
Trump posted a $175 million bond to halt collection during the appeal process
The case could potentially reach the U.S. Supreme Court if appeals fail

Trump’s Legal Team Challenges “Draconian” Judgment

Donald Trump’s attorneys have launched an appeal against a $489 million civil fraud judgment in New York, claiming the penalty is both excessive and legally defective. The case, now under review by New York’s second-highest court, stems from allegations that Trump exaggerated his net worth on financial documents to secure more favorable business terms.

John Sauer, Trump’s lawyer, described the judgment as “draconian” during the appeal hearing. He argued that there were no direct victims of the alleged fraud and that the case involves “a clear cut violation of the statute of limitations.” The legal team’s primary contention is that the penalty is disproportionate and severe, especially given the lack of identifiable victims.

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

State’s Defense and Judicial Skepticism

Despite the Trump team’s arguments, New York’s Deputy Solicitor General Judith Vale defended the judgment, asserting that it accurately reflects Trump’s fraudulent earnings. Vale stated, “There was a lot of fraud and illegality. It went on for seven years.” The state claims that the figure represents Trump’s profits from fraud over a seven-year period, during which he allegedly inflated his net worth by $800 million to $2.2 billion annually.

“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, some justices on the appeals court appeared skeptical about the size of the judgment. They questioned whether the law was being used as intended and the appropriateness of the penalty. This judicial skepticism may play a crucial role in the outcome of the appeal.

Trump’s Response and Future Legal Steps

Trump has vehemently denied any wrongdoing, characterizing the case as “election interference” and a “weaponization against a political opponent.” He claims he is being punished for “having built a perfect company, great cash, great buildings, great everything.” The former president has vowed to challenge the ruling 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.'” –AP News

To halt the collection of the judgment during the appeal process, Trump has posted a $175 million bond. This move buys time for his legal team to pursue their appeal strategy. The Appellate Division’s decision could come before Election Day, with options to uphold, reduce, modify, or overturn the ruling.

Lawyers for Donald Trump and his company will argue to an appeals panel that it should throw out a judge's February ruling that Trump must fork over hundreds of millions of dollars in profit obtained through fraud, plus millions more in interest. https://t.co/JQrI7aBOjt

— CBS News (@CBSNews) September 26, 2024

Implications and Broader Context

This civil fraud case is one of several legal challenges facing Trump in New York. While it poses no risk of prison time, the financial implications are substantial. If the appeals fail, New York Attorney General Letitia James may seek to seize Trump’s assets to satisfy the judgment.

The case has also highlighted disputes over asset valuations, particularly Trump’s Mar-a-Lago club. Trump claims it is worth $1.8 billion, while a local assessor valued it between $18 and $27 million. This discrepancy underscores the complexity of the case and the challenges in determining accurate asset valuations.

As the legal battle continues, the outcome of this appeal could have significant implications for Trump’s financial empire and his political future. The case remains a focal point in the ongoing scrutiny of Trump’s business practices and his confrontations with the legal system.