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15 States Join Trump in Challenge Against NY Court Ruling

 August 1, 2024

In an unprecedented legal move, a coalition of 15 GOP-led states has rallied behind former President Donald Trump, backing his appeal against a hefty civil fraud judgment.

A New York court's decision ordering Trump to pay about $500 million for false real estate statements could significantly impact his finances and presidential campaign, Newsmax reported.

The heart of the legal controversy stems from a recent decision by a New York court, which found Trump guilty of making misleading statements about his real estate assets, resulting in a judgment initially pegged at $355 million but which has now ballooned to approximately $500 million due to accrued interest.

South Carolina Leads Amicus Brief in Support of Trump

This coalition, led by South Carolina, contends that the fine violates constitutional protections against excessive fines and due process under the Eighth and Fourteenth Amendments. The states' legal brief emphasizes that the judgment could have wider implications beyond Trump, affecting business confidence in New York.

"Our brief isn't about Donald Trump, it's about upholding the rule of law and the Constitution," stated South Carolina Attorney General Alan Wilson. His remarks underline the coalition's stance that the ruling's implications stretch further than just the financial penalties imposed on Trump and his organization.

States' Concern Over Business Impact and Constitutional Rights

Judge Arthur Engoron made the judgment against Trump, not only against him personally but also against the Trump Organization. The states argue in their brief that the approximately $355 million disgorgement against President Trump was an excessive fine under the Eighth Amendment.

Missouri Attorney General Andrew Bailey is further complicating matters by pushing for the U.S. Supreme Court to intervene, highlighting another dimension of the legal battles Trump is facing. Bailey has expressed concerns about a "chilling effect" on business, as noted in the coalition's brief.

The brief elaborates, "The citizens of South Carolina and the other states in this coalition conduct business in New York, primarily New York City, and they need confidence that their customary business dealings in New York will not subject them to devastating fines."

Amicus Brief Claims No Direct Financial Harm to Banks

The states have defended Trump, stating that despite the allegations, all loan payments were made on time and there was no direct financial harm to the banks or insurance companies involved.

This point underscores their argument that the imposed fines are disproportionately severe given the context of the transactions.

The coalition insists, "It is universally undisputed that defendants have made all required [loan] payments on time," suggesting that the financial practices under scrutiny did not result in tangible losses for the involved financial institutions.

The coalition includes Alabama, Alaska, Florida, Iowa, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Utah, and West Virginia. These states' support highlights the geographic and political breadth of the challenge to the New York court's decision.

Legal Implications Extend Beyond Financial Penalties

The state argues in its brief that if upheld, the ruling could set a precedent impacting business operations across state lines and potentially leading to a restrictive environment for interstate commerce.

The coalition warns that the Supreme Court's disgorgement order will have a chilling effect on businesses conducted by citizens of amici states.

This legal battle concerns not only the hefty fines but also the broader implications for business norms and constitutional rights across the United States.

In conclusion, this coalition of states, led by South Carolina, supports Donald Trump in his appeal against a significant judgment.

Their collective stance underscores concerns about the potential for excessive fines and the importance of protecting constitutional rights and business confidence in the face of substantial legal judgments.

The outcome of this appeal could have far-reaching implications for both the legal landscape and the commercial sector across the country.