New York AG Asks Appeals Court to Reinstate Trump’s $500 Million Civil Fraud Penalty

The appeal comes after a New York court set aside the penalty on Aug. 21.

New York Attorney General Letitia James speaks during a press conference in the Manhattan borough of New York City on Feb. 16, 2024. David Dee Delgado/Reuters

New York Attorney General Letitia James filed an appeal on Sept. 4 of a court ruling that threw out an estimated $500 million penalty in President Donald Trump’s business fraud case.

James’s office filed a notice of appeal with the New York Supreme Court in Manhattan, indicating an appeal was being launched with the state’s highest court, the Court of Appeals of the State of New York, on behalf of the state. The brief notice does not spell out arguments from James as to why the appeal should be allowed.

The filing came after a ruling on Aug. 21 by the New York Appellate Division’s First Judicial Department, a branch of the New York Supreme Court, tossed the penalty in a fractured ruling but left the civil judgment against Trump undisturbed. The case concerned allegations that the Trump Organization was involved in financial fraud by misrepresenting property values.

The trial judge, New York Supreme Court Justice Arthur Engoron, ruled against Trump in February 2024, issuing a judgment of more than $460 million, with interest accruing. Trump posted a bond of $175 million, and the appeals process moved forward in the New York Appellate Division’s First Judicial Department.

The Appellate Division affirmed the judgment issued by Engoron, but the panel of five judges was divided, filing three separate opinions, including partial dissents.

Two of the jurists—Justices Peter Moulton and Dianne Renwick—said they thought James “acted well within her lawful power in bringing this action, and that she vindicated a public interest in doing so.” However, both disagreed with the high-dollar penalty.

Moulton said in a concurring opinion that the lower court’s penalty order “is an excessive fine that violates the Eighth Amendment of the United States Constitution.”

Justices John Higgitt and Llinet Rosado joined an opinion saying Engoron’s judgment should be vacated and a new trial ordered.

Justice David Friedman criticized James, saying she was focused on “political hygiene, ending with the derailment of President Trump’s political career and the destruction of his real estate business.”

He said that the court’s ruling “unanimously derails the effort to destroy his business.”

Trump hailed the Appellate Division ruling in an Aug. 21 post on Truth Social, saying he achieved “total victory” and that he was “so honored by Justice David Friedman’s great words of wisdom.”

James lauded the Appellate Division ruling when it came out.

“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,” she said on X.

“The court upheld the injunctive relief we won, limiting Donald Trump and The Trump Organization officers’ ability to do business in New York.”

It is unclear when the Court of Appeals of the State of New York will act on the appeal.