Appeals court upholds $1M penalty against Trump over ‘frivolous’ Hillary Clinton lawsuit

Court upheld $1 million in sanctions on Donald Trump and Alina Habba, as judges said their lawsuit against Hillary Clinton wasted judicial resources
UPDATED NOV 26, 2025
A federal appeals court affirmed $1 million in sanctions against Donald Trump and Alina Habba in the Hillary Clinton case, citing wasted resources and a pattern of misuse (Getty Images)
A federal appeals court affirmed $1 million in sanctions against Donald Trump and Alina Habba in the Hillary Clinton case, citing wasted resources and a pattern of misuse (Getty Images)

ATLANTA, GEORGIA: A federal appeals court dealt a blow to Donald Trump's legal battles, upholding a nearly $1 million penalty against the president and his attorney Alina Habba, for filing a "frivolous" lawsuit against Hillary Clinton.

The 11th US Circuit Court of Appeals ruled that Trump and Habba committed "sanctionable conduct" by pursuing claims that Clinton and former FBI Director James Comey conspired to rig the 2016 election.

The panel, led by Chief Judge William Pryor, a George W Bush appointee, affirmed the lower court's decision that the lawsuit was an "abuse of judicial resources."

Judges rules arguments were 'frivolous'

Chief Judge William Pryor wrote that Donald Trump and Alina Habba engaged in 'sanctionable conduct' by pursuing the meritless case (Chief Judge William H. Pryor Jr. delivering the 2025 Rice-Hasson Lecture)
Chief Judge William Pryor wrote that Donald Trump and Alina Habba engaged in 'sanctionable conduct' by pursuing the meritless case (Chief Judge William H Pryor Jr delivering the 2025 Rice-Hasson Lecture)

Writing for the unanimous three-judge panel, Judge Pryor did not mince words regarding the validity of the president's legal strategy.

"Many of Trump’s and Habba’s legal arguments were indeed frivolous," Pryor wrote, dismissing the attempt to revive the 2022 lawsuit.

The panel, which included Trump appointee Andrew Brasher and Biden appointee Embry Kidd, agreed that the district court judge had properly considered Trump’s reported "pattern of misusing the courts" when levying the sanctions.

The ruling effectively shut down Trump's bid to sue Clinton, Comey, and the Democratic National Committee over the Russia collusion investigation, a legal fight Trump had reportedly characterized as a battle against a "racketeering conspiracy."

Penalty imposed for 'abuse of the judicial process' 

U.S. President Donald Trump delivers remarks during a Cabinet Meeting at the White House on February 26, 2025 in Washington, DC. Trump is holding the first Cabinet meeting of his second term, joined by Tesla and SpaceX CEO Elon Musk, head of the Department of Government Efficiency (DOGE). Trump was joined by Secretary of State Marco Rubio (L) and Secretary of Defense Pete Hegseth. (Photo by Andrew Harnik/Getty Images)
President Donald Trump delivers remarks during a Cabinet Meeting at the White House on February 26, 2025, in Washington, DC (Andrew Harnik/Getty Images)

The sanctions were originally imposed in January 2023 by US District Judge Donald Middlebrooks, a Bill Clinton appointee based in Florida.

Middlebrooks had ordered Trump and Habba to pay nearly $1 million to cover the legal fees of the defendants. He had slammed the lawsuit as a political manifesto masquerading as a legal grievance.

"No reasonable lawyer would have filed it," Middlebrooks wrote at the time, accusing Trump of being a "mastermind of strategic abuse of the judicial process."

Pryor’s 36-page opinion echoed these sentiments, rejecting Trump's claims that the lower court was biased and affirming that the lawsuit was "untimely and otherwise meritless."

Alina Habba's legal troubles continue

Alina Habba, who served as lead counsel on the Russia-related lawsuit, was held jointly liable for the penalty alongside the former President (Samuel Corum/Getty Images)
Alina Habba, who served as lead counsel on the Russia-related lawsuit, was held jointly liable for the penalty alongside the former President (Samuel Corum/Getty Images)

The ruling was a significant setback for Alina Habba, who served as lead counsel on the case before becoming a prominent spokesperson for Trump's legal defense team.

Habba’s professional conduct faced increasing scrutiny. Earlier this year, a judge ruled that her temporary appointment as the top federal prosecutor in New Jersey was illegal after the Trump administration used an unusual maneuver to extend her term.

Despite these legal headwinds, Habba remained a key figure in Trump's orbit, frequently appearing on cable news to defend the president against what she describes as "politically motivated" prosecutions.

Another Trump loss in the 11th Circuit 

U.S. President Donald Trump takes a question from a reporter in the Roosevelt Room of the White House on March 3, 2025 in Washington, DC. Trump announced that Taiwan Semiconductor Manufacturing Company, one of the largest manufacturers of semiconductor chips, plans to invest $100 billion in new manufacturing facilities in the United States. (Photo by Andrew Harnik/Getty Images)
President Donald Trump takes a question from a reporter in the Roosevelt Room of the White House on March 3, 2025, in Washington, DC (Andrew Harnik/Getty Images)

This decision marked the second time in recent days that the Atlanta-based appeals court has ruled against Trump.

Last week, a separate panel, which included two Trump appointees, rejected his effort to revive a defamation lawsuit against CNN for using the term "The Big Lie" to describe his challenges to the 2020 election.

The court ruled that the network's terminology was protected opinion, further narrowing the legal avenues available to Trump.

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