Representatives of former President Donald Trump filed a brief on Wednesday in the New York Court of Appeals. They argued the court should dismiss his liability finding in a $464 million civil fraud case related to Trump’s real estate valuations.
The appeal suggests the case had several legal flaws that should have prevented it from proceeding. The argument states, “This case should have never been brought, and the judgment cannot stand.” It describes the situation as unusual, involving improper statements targeting Trump, his family, and his businesses.
This appeal marks another instance of Trump resisting what he describes as politically motivated legal actions endured during his administrations. It provides Trump a chance to challenge penalties from the verdict.
“Attorney General Letitia James speaks during a news conference after a verdict against former U.S. President Donald Trump in a civil fraud trial February 16, 2024, in New York City.”
In 2022, New York Attorney General Letitia James accused Trump of fraudulent activities. Her office alleged 200 instances of fraud by overvaluing properties to obtain favorable loans or insurance, violating New York Executive Law § 63(12). This law tasks the attorney general with prosecuting repeated fraudulent or illegal acts.
The law defines fraud as any scheme or deception intended to mislead. In 2023, Trump was found liable and ordered to pay $355 million plus interest in damages. He was also banned from serving as an officer or director of any New York company for two years and from applying for loans from any New York bank or financial institution for three years. Although an appeals court later vacated the monetary award, Trump’s legal team argues the liability finding and remaining restrictions must also be overturned.
The appeal challenges the verdict on five key points. It claims that Attorney General James lacked authority, pointing out the case involves private commercial transactions, not public harm. It suggests Trump’s valuations were subjective estimates, independently assessed by lenders, rather than fraudulent misrepresentations.
“The only supposed ‘victims’ here are a handful of sophisticated banks and insurers that have never claimed harm, were keen to do business with Trump, and earned over $100 million from these transactions,” the appeal states.
The document argues that the prosecution’s basis of overvaluation hinges on the incorrect assumption that real estate has one objective value, with deviations being fraudulent. “Under that broad theory, NYAG can second-guess any business transaction in the state on various imagined grounds,” it asserts.
On penalties, the appeal contends the $450 million disgorgement is excessive, unlawful, and unconstitutional. The case’s politically charged nature, it argues, should have halted its consideration.
“NYAG cannot cite a single Section 63(12) enforcement against similarly situated developers or any comparable defendants based on similar practices,” it claims.
“Ms. James repeatedly called Trump a ‘criminal’; pledged to ‘investigate Trump and his business transactions,’ ‘review … Trump-related real estate transactions,’ and ‘take on … his business in New York’; and threatened Trump’s ‘family’ and ‘anyone in his orbit,” the document notes.
James’ office did not immediately comment. Leo Briceno is a politics reporter for Fox News Digital, previously with World Magazine.
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