Donald Trump's legal team has filed an appeal with the New York Court of Appeals, urging the court to overturn the liability finding in the civil fraud case that resulted in a $464 million penalty against him and his businesses. The appeal, submitted Wednesday, contends the case suffered from significant legal flaws and was pursued in an unlawful and unprecedented manner.
Trump's lawyers argue that the case, brought by New York Attorney General Letitia James, should not have been heard, stating, "This case should have never been brought, and the judgment cannot stand." The filing asserts that the case involves "improper statements targeting President Trump, his family, and his businesses" and accuses the attorney general's office of applying New York law in an "unprecedented and unlawful way."
The appeal highlights Trump's characterization of such legal actions as politically motivated "lawfare" that he has faced between his presidential administrations. It also represents an opportunity for Trump to challenge penalties that remain in effect.
The Case Against Trump
In 2022, Attorney General James sued Trump, alleging hundreds of instances of fraud related to the overvaluation of his real estate properties. The suit claimed these inflated valuations were used to secure more favorable loans and insurance rates, violating New York Executive Law § 63(12), which targets repeated fraudulent or illegal acts.
Trump was found liable in 2023. The initial judgment required him to pay $355 million in damages plus interest and imposed a two-year ban on serving as an officer or director of any New York company. He also faced a three-year ban from applying for loans from New York financial institutions. While an intermediate appeals court later vacated the monetary award, Trump's lawyers maintain that the underlying liability finding and other restrictions should be overturned.
Arguments in the Appeal
The appeal outlines five primary arguments against the verdict. Firstly, it questions Attorney General James' authority to bring the case, asserting that it concerns private commercial transactions rather than harm to the public. The legal team contends that Trump's property valuations were subjective estimates that lenders independently assessed, rather than fraudulent misrepresentations. "The only supposed 'victims' here are a handful of ultrasophisticated banks and insurers that have never claimed to be injured, were eager to do business with President Trump and his family, and made over $100 million from these transactions," the appeal states.
Secondly, the appeal challenges the prosecution's premise that deviations from a single, objective value for real estate constitute fraud. "Under that breathtakingly broad theory, NYAG can second-guess any business transaction in this State on almost any imagined grounds," the filing argues.
Thirdly, the penalties imposed, including the $450 million disgorgement, are described as excessive, unlawful, and unconstitutional.
Fourthly, the appeal argues that the alleged overvaluation is not supported by comparable enforcement actions against other developers under Section 63(12).
Finally, the appeal contends that the politically charged nature of the case itself should have warranted its dismissal. The document cites James' public statements, including calling Trump a "criminal" and vowing to "investigate President Trump and his business transactions," as evidence of bias. "Ms. James repeatedly called President Trump a ‘criminal’; promised to ‘investigate President Trump and his business transactions,’ ‘review ... Trump-related real estate transactions,’ and ‘take on ... his business in New York’; and threatened President Trump's 'family' and 'anyone in his orbit,'" the document states.