Trump wins major appellate court ruling erasing $500 million penalty

Trump Slams New York Judge After Appellate Win in Civil Fraud Case

President Donald Trump launched a scathing attack on New York Judge Arthur Engoron following a major appellate victory in his state civil fraud trial. Trump criticized Engoron, calling him “incompetent,” “crooked,” and nearly as “corrupt” as New York Attorney General Letitia James.

Trump’s criticism came after an appellate court ruling that overturned a $500 million penalty in James’ high-profile civil fraud case, marking a significant legal triumph for the former president.

“The Appellate Court removed incompetent Judge Engoron, but he refused to go, or even to acknowledge them,” Trump wrote on Truth Social. “He’s a highly overturned, CROOKED Judge, who is retiring into a life of lawsuits, along with his Chief Clerk, soon! He is almost as Corrupt as Letitia James, but not quite!”

Engoron presided over the non-jury trial, with Trump’s allies accusing him of bias against the president, his family, and his company. The case revolved around allegations of inflating asset values to secure favorable terms from a lender.

Judicial Ruling Overturns $500 Million Penalty

The New York Appellate Division nullified the $500 million penalty, deeming it excessive and a violation of the Eighth Amendment. The court upheld liability findings against Trump and his company while affirming James’ authority to pursue the case and impose injunctive relief.

While the ruling upheld liability, it wiped out the hefty penalty, including interest, totaling around $500 million.

Legal Dissent and Potential Appeal

Justice David Friedman dissented in part, contending that James’ motives were political, urging for the dismissal of the case. He criticized James’ utilization of New York’s Executive Law to target Trump, alleging it granted her excessive power to prosecute political adversaries.

Friedman argued that Trump’s business dealings did not harm the public and called for the dismissal of the complaint. With conflicting judicial opinions on liability, the case is likely to advance to New York’s highest court, the Court of Appeals, as James plans to appeal.

Political Backlash and Ongoing Investigations

James, a Democrat known for her confrontations with Trump, has faced allegations of mortgage fraud herself. Amid Trump’s return to politics, the Justice Department has initiated investigations into James’ conduct, prompting accusations of political targeting.

James has denounced the investigations as a “revenge tour” for her civil fraud suit against Trump. The legal battle between the former president and the New York Attorney General is poised to escalate as both parties remain embroiled in legal disputes.

Contributors: Michael Dorgan and Maria Paronich