An appeals court has recently overturned a significant $500 million (£372 million) fine imposed on former President Donald Trump in a New York civil fraud trial from the previous year. The original ruling by Judge Arthur Engoron mandated Trump to pay this substantial penalty for allegedly inflating the value of the Trump Organization's properties to secure advantageous loans.
In a comprehensive ruling released on Thursday, judges from the New York Supreme Court's Appellate Division acknowledged Trump's liability for fraud but deemed the hefty fine excessive. The judges argued that such a penalty likely infringed upon constitutional protections against disproportionate punishment. Initially, Judge Engoron had ordered Trump to pay $355 million, but with accrued interest, the amount ballooned to over $500 million.
Judge Peter Moulton noted in the ruling, "While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state." This indicates a critical evaluation of the circumstances surrounding the case and the justification for such a punitive financial penalty.
Following the appeals court's decision, Trump took to his social media platform, Truth Social, to declare the ruling a complete victory. He expressed his appreciation for the court's courage in overturning what he characterized as an "unlawful and disgraceful Decision that was hurting Business all throughout New York State." Trump maintained that the case was a political witch hunt unlike anything seen before.
Despite the annulment of the financial penalty, the appellate court upheld several non-monetary sanctions imposed by Judge Engoron. These include a three-year ban preventing Trump from serving as a director of a company or obtaining loans from banks within the state. This aspect of the ruling indicates that while the financial repercussions may have been lifted, significant restrictions remain in place for Trump and the Trump Organization.
Both parties have the option to appeal this decision to New York's highest court, the New York Court of Appeals. The 323-page ruling contained multiple opinions from the five-judge panel, revealing a rift regarding the merits of the original lawsuit initiated by New York Attorney General Letitia James. While some judges affirmed her authority in pursuing the case, one judge argued for its dismissal, and two others suggested a need for a new trial with a more limited scope.
Judge Moulton highlighted that American voters had already rendered a verdict on Trump's political career, suggesting that the court's decision was a significant step in preventing further attempts to undermine his business interests. He emphasized that the imposed fine violated the US Constitution's Eighth Amendment, which prohibits excessive fines and cruel and unusual punishments.
This ruling comes nearly a year after the panel heard oral arguments regarding the appeal, during which several judges expressed skepticism about the civil fraud case against Trump. Trump's son, Eric Trump, also weighed in, celebrating the decision on social media by stating, "After 5 years of hell, justice prevailed!"
The BBC has reached out to the New York Attorney General's Office for comments regarding this recent development. In September 2023, Judge Engoron had ruled that Trump was liable for business fraud, concluding that he had misrepresented his wealth by several hundred million dollars. Another trial is slated for 2024 to determine the penalties that Trump may face.
In one notable instance, the judge found that Trump had inaccurately claimed the size of his Trump Tower penthouse, stating it was nearly three times its actual size. Trump has consistently alleged that the case brought forth by James, a Democrat, was motivated by political bias.
