David Dee Delgado/Getty Images; Paul Hennessy/Anadolu Agency via Getty Images
A New York appellate court has tossed a massive civil fraud penalty against President Donald Trump and the Trump Organization, granting a significant legal win to the president.
After a three-month bench trial, a Manhattan judge last year ordered the Trump Organization, Trump, and a group of other executives to pay $454 million.
The case was brought by New York Attorney General Letitia James, who revealed internal Trump Organization documents and witness testimony that revealed Trump’s decadelong pattern of lying to banks about his worth in order to receive favorable terms for loans.
The penalty has since ballooned to over $500 million with additional interest, as Trump appealed the verdict.
On Thursday, a group of five appellate judges struck down the fines issued by trial judge Arthur Engoron, finding them excessive — but couldn’t agree on much else.
They issued three separate opinions spanning 323 pages. The opinions disagreed on significant legal issues underpinning the case, including whether the Trump Organization should be liable for every particular count, whether some of the legal wins Engoron granted were barred by the statute of limitations, and whether James had the authority to bring the lawsuit against Trump in the first place.
After 11 months of deliberation — an unusually long time for the New York appellate court — two judges agreed to join the majority decision “for the sole purpose of ensuring finality, thereby affording the parties a path for appeal” to the state’s highest appeals court, one judge wrote.
Representatives for Trump’s legal team and for the New York Attorney General’s office didn’t immediately respond to requests for comment.
During that appeal, no money would change hands. Neither Trump nor James are permitted to touch a $175 million appeal bond that Trump posted in April.
The bond is underwritten by Knight Specialty Insurance Company, and wholly collateralized by Trump’s cash. Trump continues to have no access to that cash, court records show.
This story is developing. Please check back for updates.
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