New York appeals court tosses Trump's massive civil fraud judgment in blow to AG Letitia James

A New York appeals court on Thursday tossed the roughly $500 million fine against President Trump in a defeat for New York Attorney General Letitia James, who accused his business of inflating property value and deceiving banks.

The court heard the dispute a year ago and had yet to deliver a decision, which is unusual as the New  York Appellate Division, First Judicial Department, usually issues rulings within a few weeks.

The five-judge panel’s move tosses the massive penalty.

“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” Judges Dianne T. Renwick and Peter H. Moulton wrote, according to The Associated Press.

Ms. James’ office said that despite the decision, it will continue to push the legal battle, according to Fox News.

The dispute has been pending since oral arguments in September 2024.

The president was looking at a more than $500 million penalty after Ms. James won a case against him and the Trump Organization for allegedly defrauding banks. However, the banks testified at trial that they were paid in full.

During oral arguments, some of the judges appeared skeptical of the state’s case. One judge said the consumer fraud case against Mr. Trump was unusual because there were no victims.