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Trump Lawyers Cite Statute of Limitations in Appeal of Civil Fraud Outcome

 September 30, 2024

Former President Donald Trump’s legal team appeared in a New York City court Thursday to appeal a nearly $500 million civil fraud judgment.

At the heart of Trump's argument is a claim that the bringing of the case violated the statute of limitations, with the court’s panel of judges appearing receptive to claims, leaving room for the possibility of a reduced or overturned judgment, according to the Washington Examiner

The contested judgment stemmed from financial statements issued by the Trump Organization.

Trump's attorney, D. John Sauer, emphasized that the case was a "clear-cut" example of a statute of limitations violation. According to Sauer, the court improperly considered evidence that was too old to be legally admissible.

Panel Appears Sympathetic to Trump's Position

Throughout the hearing, several judges expressed skepticism about aspects of the original ruling. Judge Peter H. Moulton, for instance, questioned whether New York Attorney General Letitia James' lawsuit exceeded its legal bounds. Sauer, for his part, also argued that there was a "critical failure of proof" during the trial.

Alton Harmon, another attorney present, observed that the panel of judges seemed sympathetic to the argument against James' case. "The use of ‘troubling’ or ‘it gives me pause’ is a bad signal for Ms. James," Harmon remarked after the hearing. He also suggested that the judges might either reduce the judgment amount or order a retrial based on the evidence.

Trump's Team Challenges Evidence Used In Fraud Case

The lawsuit in question is just one of several legal battles facing Trump as he campaigns for the presidency. In February, New York Supreme Court Justice Arthur Engoron ordered Trump to pay over $454 million in connection with the civil fraud case. Trump’s experts testified during the trial that the financial statements provided to banks by the Trump Organization were undervalued, contradicting the charges of fraudulent activity.

During the appeal hearing, New York Deputy Solicitor General Judith Vale defended the state’s case, arguing that Trump’s actions had caused harm to the public and financial markets. She pointed to Deutsche Bank, which had ended its relationship with the Trump Organization due to a lack of information.

"This does have harm to the public and the market," Vale said. "The Deutsche Bank did complain. … They asked for more information, and when they didn’t get more information, they ended the relationship with the Trumps."

Legal Debate Over New York Fraud Law

The legal discussion also focused on New York Executive Law Section 63(12), which allows the attorney general to pursue cases of fraud against the public.

The law, enacted in 1956, has been the subject of criticism for its broad application. Trump’s legal team argued that this law should not have been applied in this case, particularly with regard to the older evidence used in the trial.

Attorney General Letitia James has been pursuing Trump since her 2017 campaign, making this a significant case for her office. Despite her efforts, the panel of judges seemed inclined to reconsider the scope of the case, which could result in a retrial or a reduced penalty for Trump.

Protesters Gather Outside Court As Trump Lawyers Fight

Outside the courthouse, anti-Trump protesters gathered to voice their opposition to the former president. Inside, several of Trump's attorneys, including Will Scharf and Alina Habba, attended the hearing as part of the defense team. Trump himself did not attend the proceedings.

While the panel of judges has not yet made a decision, it is expected that they will issue a ruling either next month or after the upcoming election. Polls show a close race between Trump and Vice President Kamala Harris, who is said by some to be leading by nearly two points.

Potential Outcomes of Appeal

If the appellate court rules against Trump, he may appeal to the New York Court of Appeals. However, legal experts like Alton Harmon believe the panel could reduce the amount of the judgment or order a retrial with revised instructions on the scope of the fraud law. Harmon noted, "They could perhaps reduce the amount of the judgment or even order a retrial with overturned findings as to the admissibility of older evidence and revised instructions limiting the scope of the fraud applicable statutes."

Trump also faces other legal issues, including nearly $90 million in federal civil penalties for defamation and a separate conviction on 34 felony counts related to hush money payments. He has posted a $175 million bond and is accruing an additional $24 million due to a 9% interest rate.

Conclusion: Trump’s Legal Battles Continue Amid Presidential Campaign

Trump's legal team is attempting to overturn a nearly $500 million civil fraud judgment, citing a violation of the statute of limitations.

The New York court hearing seemed to favor Trump's case, with the judges open to reducing the judgment or ordering a retrial.

This case is one of many legal challenges Trump faces as he campaigns for the presidency. The final ruling from the court is expected soon, and if unfavorable, Trump may take the matter to the New York Court of Appeals.