A panel of New York appellate judges expressed skepticism on Thursday over the massive $454 million civil fraud judgment against former President Donald Trump, raising concerns about the fairness of the penalty. Trump was previously found liable for business fraud after New York Attorney General Letitia James filed a lawsuit accusing him of inflating his net worth by billions of dollars to secure favorable loan and insurance terms. report from The Daily Beast.
Trump’s legal team appeared before the Manhattan appeals court, seeking to reverse or reduce the judgment, which includes a $354 million penalty and $100 million in interest. They argued that the ruling by Judge Arthur Engoron was excessive, calling it “draconian, unlawful, and unconstitutional.”
One of the appellate judges, Peter Moulton, questioned whether the lawsuit had overreached, noting that the “immense penalty in this case is troubling.” Other judges on the five-member panel appeared open to reconsidering aspects of the ruling, particularly regarding the bond required.
Trump’s attorney, D. John Sauer, argued that the lawsuit stretched New York’s consumer protection laws beyond their intended scope, pointing out that there were “no victims” and “no complaints” from lenders or insurers about Trump’s business dealings. He also claimed the case violated the statute of limitations and could create uncertainty in the real estate industry if left to stand.
In his original ruling, Judge Engoron found that Trump, along with his company and top executives—including his sons Eric and Donald Jr.—misled banks by inflating Trump’s wealth on financial statements, allowing the Trump Organization to secure loans that brought them substantial profits.
Trump’s lawyers contended that the bond required for the judgment was “unprecedented” for a private company, stating that posting the full amount would be a “practical impossibility.” They also submitted a brief to the Appellate Division in July, asserting that Trump’s financial statements had actually understated his wealth, and there was no evidence that any lenders had suffered financial harm. They further claimed that the lawsuit was politically motivated. told by Fox News.
A decision from the appellate court is expected within a month, which could arrive before Election Day on November 5. For the judgment to be altered or overturned, at least three of the five judges must agree. If the court rules against Trump, his legal team plans to appeal the case all the way to New York’s highest court and possibly the U.S. Supreme Court, which could delay a final ruling until 2026.
Despite the looming legal battle, Trump has maintained his innocence, vowing to fight the case “all the way up to the US Supreme Court if necessary.”
