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President Donald Trump is taking his legal fight back to New York’s highest court after a midlevel appeals court delivered a split ruling that preserved fraud findings against him while wiping out a financial penalty exceeding $500 billion.
Trump’s attorneys filed a notice of appeal Tuesday with the New York Court of Appeals, setting up the next chapter in a case brought in 2022 by New York Attorney General Letitia James. The civil fraud lawsuit accused Trump, his sons Donald Trump Jr. and Eric Trump, and a company executive of inflating Trump’s net worth for years to obtain favorable tax and insurance terms.
Earlier this month, a panel of the Appellate Division’s First Department upheld the finding of fraud but struck down a $464 million penalty imposed by Judge Arthur Engoron, which had grown with interest to more than $515 million.
The divided five-judge panel issued a lengthy 323-page decision with multiple opinions. Two judges called for a new trial, and another favored dismissing the case altogether. Ultimately, three judges formed a majority to affirm the fraud ruling while overturning the penalty.
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” the main opinion by Judges Dianne T. Renwick and Peter H. Moulton read.
Trump quickly declared victory, telling law enforcement officers in Washington, D.C., last week: “I had a victory today. You know, they stole $550 million from me with a fake case, and it was overturned.”
He and his family have touted the erased penalty as proof of a “TOTAL VICTORY” despite the fact that other restrictions remain in place, including a ban preventing Trump and his sons from serving as top executives in New York companies for several years.
James, who has made Trump a focal point of her political career, vowed to appeal the ruling.
The case originated with a bench trial before Judge Engoron, who concluded that Trump’s inflated property valuations undermined the state’s financial system and warranted steep punishment. With appeals now active on both sides, the case is headed for the New York Court of Appeals, where Trump and James are expected to continue their legal battle.