Trump $464 Million NY Civil Fraud Penalty Vacated on Appeal

[LetMyPeopleVote]

Link to tweet

https://news.bloomberglaw.com/us-law-week/trump-464-million-ny-civil-fraud-penalty-vacated-on-appeal

A New York appeals court struck down a $464 million fraud penalty against President Donald Trump and his company in a civil suit over his asset valuations, but upheld his liability in the case, handing him a financial victory over the state’s attorney general.

The decision Thursday vacates a massive penalty from February 2024 by a Manhattan judge who found Trump illegally enriched himself for a decade by inflating the value of his assets on financial documents to get better terms on loans. The appeals court found the penalty “excessive” but maintained that Trump broke the law.

The long-awaited ruling by an intermediate state appeals court wipes out one of Trump’s biggest financial liabilities. It also puts fresh legal pressure on New York Attorney General Letitia James, who has become the focus of a federal probe into whether her lawsuit violated Trump’s legal rights.

[Walleye]

1. He wouldn't pay it anyway. She's a black woman he wouldn't obey.

[newdeal2]

2. Just a woman does it

He doesn’t know the meaning of no or stop it if a woman says it.

[Walleye]

4. Yes, his whole administration has the morals and ethics of a rapist

That’s the main reason I’ve hated his guts all this time. A woman is not obligated to tolerate a rapist. He won’t take no for an answer in any situation. And there are men who think this is a virtue.

[Ilsa]

3. How much does he owe in back state taxes? Will

there be a penalty at all since this one is vacated? Can AG James get a new penalty assessed?

[Just_Vote_Dem]

5. Why is he so fucking teflon?

There's got to be a lot we don't know

[Scrivener7]

6. His corruption is contagious. Always has been.

[WiVoter]

7. I'm thinking death threats

That would probably do it

[radicalleft]

8. The average American citizen

Would have long ago been buried under the prison and his family for generations would be financially devasted only doing a mere fraction of what he has gotten away with...it's mind-boggling and frustrating.

[Just_Vote_Dem]

9. I often wondered if he was some kind of double agent

Until he got elected and basically gave the keys to Putin

[markodochartaigh]

10. Power buys favor.

And the president of the US is one of the most powerful people in the world, after the president of Russia, of course.

[Just_Vote_Dem]

11. He got away with a lot of shit before he was President n/t

[Johonny]

13. It isnt like the privilege of wealth

Just started. He has gotten away with shit for years because he was good at befriending those in power in the NYC power structure. White wealth privilege is alive and well in the USA.

[markodochartaigh]

14. Because he had money.

Money is power.

[Johonny]

12. Laws only apply to poor people in America

There simply is nothing rich people can do anymore to warrant the legal system not to go out of their way to forgive, delay, and forget the crime.

Even conviction isn't enough. We are a lawless nation. A nation that punishes the innocent poor and rewards the lawless oligarchs. Pretending it is any other way is to live in a fantasy.

[LetMyPeopleVote]

15. Statement from AG James

Link to tweet

https://abcnews.go.com/US/appeals-court-throws-trumps-454-million-civil-fraud/story?id=124848691&cid=social_twitter_abcnp

James, in a statement released following the decision, said that her case "has merit" and that she will appeal to the state's highest court in an attempt to reinstate the penalty.

"The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud. The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers' ability to do business in New York," the statement said. "We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers."

"Today's ruling by the New York appeals court is a resounding victory for President Trump and his company," said Trump's former personal attorney Alina Habba, who helped represent Trump in the case and was later named interim U.S. attorney for New Jersey. "The court struck down the outrageous and unlawful $464 million penalty, confirming what we have said from the beginning: the Attorney General's case was politically motivated, legally baseless, and grossly excessive."

[LetMyPeopleVote]

16. Deadline: Legal Blog-The Trump civil fraud case is a mess. Another round of appeal could clean it up.

New York Attorney General Letitia James has already signaled her intention to seek further review at the state’s highest court.

The Trump civil fraud case is a mess. Another round of appeal could clean it up.

New York Attorney General Letitia James has already signaled her intention to seek further review at the state’s highest court.
www.msnbc.com/deadline-whi...

— Phyllis B Kantor (@wiselady11.bsky.social) 2025-08-22T15:54:35.908Z

https://www.msnbc.com/deadline-white-house/deadline-legal-blog/trump-civil-fraud-case-letitia-james-appeal-new-york-rcna226377

But that was just the beginning. The oddity grew upon seeing, toward the start of the first of three separate decisions from the five-justice panel, that “none of the three decisions garners a majority.”.....

That first opinion, by Justice Peter Moulton joined by Justice Dianne Renwick, said that those two justices thought New York’s attorney general acted lawfully in bringing the fraud case. But they said that ordering the defendants to “pay nearly half a billion dollars” to New York amounts to an “excessive” and unconstitutional fine.

The second opinion, by Justice John Higgitt joined by Justice Llinét Rosado, agreed that James had the authority to bring the suit but said they thought a new trial was warranted.

The third opinion, by Justice David Friedman, argued for dismissing the case outright in Trump’s favor.

So, we have three opinions saying different things. How did the panel attempt to come to a resolution?....

Though they thought a new trial was needed, their opinion said that “after much consideration, with great reluctance and with acknowledgement of the incongruity of the act,” they agreed to join the bottom line of Moulton and Renwick’s opinion that tosses out the massive financial penalty as well as sanctions on Trump defense lawyers, while otherwise upholding the case in James’ favor.

Citing the “truly extraordinary circumstances here, where none of the writings enjoys the support of a majority,” they said the parties “must have a decision on this matter and, concomitantly, the option of further review of this matter by the Court of Appeals.”....

James, who has denied any wrongdoing herself, said in a statement Thursday that the appeals court “affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud.” She said the court “upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers’ ability to do business in New York. It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit.” She concluded: “We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”

I followed the trial of this case and I listened to the oral arguments in this case. Prior to the oral arguments, the court had on its own motion reduced the bond that trump was required to post from $500 million or so to $175 million. I personally thought that the judge used the wrong measure of damages in his judgment and was expecting to see a remittitur or reduction of damages.

The Court of Appeals (the highest court in NY) is going to have fun in this case. The fact that court found that trump violated the law and upheld the injunctions is meaningful. trump and his kids are banned from being an officer in a New York corporation.