President-elect Donald Trump and New York Attorney General Letitia James are locked in a legal battle over whether a $485 million civil fraud judgment against Trump should be vacated following his November election victory.
The dispute centers on a February ruling in which Trump was found liable for inflating the value of his assets to secure favorable loan and insurance terms.
The original $454 million judgment has grown to over $485 million due to ongoing interest. Trump denies wrongdoing and has appealed the ruling, while his legal team argues that the lawsuit overreached, claiming the inflated valuations caused no harm to lenders.
Legal Letters Fuel Debate
In a public letter released Tuesday, New York Deputy Solicitor General Judith Vale rebuffed Trump attorney John Sauer’s request to dismiss the case.
Sauer, citing constitutional protections, argued that federal law preempts state legal actions against a sitting president, effectively shielding Trump from the judgment during his presidency.
Vale countered that the U.S. Constitution does not exempt presidents from civil lawsuits unrelated to their official duties. She cited the 1997 Supreme Court ruling in Clinton v. Jones, which allowed a civil sexual harassment case against then-President Bill Clinton to proceed while he was in office.
“The ordinary burdens of civil litigation do not impede the President’s official duties in a way that violates the U.S. Constitution,” Vale wrote, asserting that Trump’s appeals could continue without interfering with his presidential responsibilities.
Sauer, who has been nominated by Trump to serve as solicitor general in his upcoming administration, did not immediately respond to requests for comment.
Trump Team Fires Back
Trump spokesperson Steven Cheung dismissed Vale’s letter as “sad and weak” while praising Sauer’s arguments as a “powerhouse submission.”
He urged Attorney General James to “heed President Trump’s call for national unity and drop this baseless, discredited witch hunt.”
Broader Legal Challenges
The civil fraud case is one of several high-profile legal battles involving Trump. Two federal juries in New York recently awarded advice columnist E. Jean Carroll a combined $88.3 million in damages for sexual abuse and defamation.
Trump, who denies Carroll’s allegations, is appealing those judgments as well.
The New York fraud judgment also bars Trump from conducting business in the state for three years, adding another layer of complexity to his post-election legal landscape.
Ongoing Appeals
Trump’s appeal in the fraud case is currently under review by a New York appellate court. While he could opt to pay the judgment, his legal team has shown no indication of taking that route.
The case underscores the continued intersection of Trump’s legal battles with his political career as he prepares to assume the presidency once again.
