Trump lawyers urge NY court to toss fraud judgment, accuse AG Letitia James of targeting family

Donald Trump’s lawyers challenged the 'broad' interpretation of New York law, calling the $450 million award excessive, unlawful and unconstitutional
Letitia James sued Donald Trump in 2022 over property valuations. Trump was found liable and ordered to pay $355 million (Getty Images)
Letitia James sued Donald Trump in 2022 over property valuations. Trump was found liable and ordered to pay $355 million (Getty Images)

WASHINGTON, DC: President Donald Trump’s lawyers on Wednesday, August 26, asked New York’s highest court to overturn the liability finding in the state’s civil fraud case against him, arguing that the case should never have been brought.

The filing challenges New York Attorney General Letitia James’ authority to pursue the case and argues that the penalties imposed against Trump were excessive and unlawful.

The president’s lawyers also pointed to James’ public comments about Trump and his family as evidence of what they described as political targeting.

Trump lawyers challenge New York fraud ruling

James sued President Trump in 2022, alleging that he repeatedly overvalued his properties in New York to secure favorable loan and insurance terms.

Trump was found liable in 2023 and was ordered to pay $355 million plus interest in damages.

He was also banned from serving as an officer or director of any New York company for two years and from obtaining loans from any banks in the city for three years.

Attorney General Letitia James speaks during a press conference following a verdict against former U.S. President Donald Trump in a civil fraud trial on February 16, 2024 in New York City. Justice Arthur Engoron ruled against the former president finding him liable for conspiring to manipulating his networth and fining him $335 million and imposing a three year ban from serving in top roles at any NY company. The judge also banned Eric and Donald Trump Jr. for two years as well as a fine of more than four million dollars. (Photo by Michael M. Santiago/Getty Images)
Attorney General Letitia James speaks during a press conference following a verdict against President Donald Trump in a civil fraud trial on February 16, 2024 in New York City (Michael M Santiago/Getty Images)

Although an intermediate appeals court later vacated the monetary award, Trump’s lawyers have argued that the underlying liability finding and the remaining restrictions should also be overturned.

“This case should have never been brought, and the judgment cannot stand,” the appeal states.

“This case is extremely unusual; it involves not only reams of improper statements targeting President Trump, his family, and his businesses, but also a decision to apply (New York law) against those targets in a completely unprecedented and unlawful way.”

President Donald Trump talks to reporters after arriving on Air Force One Tuesday, Aug. 11, 2026, at Joint Base Andrews, Md. (AP Photo/Mark Schiefelbein)
President Donald Trump talks to reporters after arriving on Air Force One Tuesday, August 11, 2026, at Joint Base Andrews (AP Photo/Mark Schiefelbein)

The filing argues that James lacked the authority to bring the case because it involved private commercial transactions rather than harm to the public.

Trump’s lawyers also dispute the premise that the property valuations amounted to fraudulent misrepresentations, arguing that real estate values involve subjective estimates and that the banks involved had independently evaluated the transactions.

NEW YORK, NEW YORK - NOVEMBER 06: Former President Donald Trump exits the courtroom after testifying at his civil fraud trial at New York State Supreme Court on November 06, 2023 in New York City. Trump testified in the civil fraud trial that alleges that he and his two sons Donald Trump Jr. and Eric Trump conspired to inflate his net worth on financial statements provided to banks and insurers to secure loans. New York Attorney General Letitia James has sued seeking $250 million in damages. His sons testified in the trial last week and his daughter Ivanka Trump is scheduled to testify on Wednesday after her lawyers were unable to block her testimony. (Photo by Michael M. Santiago/Getty Images)
President Donald Trump exits the courtroom after testifying at his civil fraud trial at New York State Supreme Court on November 06, 2023 in New York City (Michael M Santiago/Getty Images)

“The only supposed 'victims' here are a handful of ultra-sophisticated banks and insurers that have never claimed to be injured, were eager to do business with President Trump and his family, and made over $100 million from these transactions,” the appeal states.

Trump lawyers accuse Letitia James of political targeting

Trump’s lawyers also argue that the case relied on a “broad” interpretation of New York law that could allow the attorney general to “second-guess” any ordinary business transactions.

“Under that breathtakingly broad theory, NYAG can second-guess any business transaction in this State on almost any imagined grounds,” the filing states.

The appeal also challenges the $450 million disgorgement award, calling it excessive, unlawful and even unconstitutional. Finally, the appeal argues that the politically charged nature of the case should have prevented it from proceeding.

NEW YORK, NEW YORK - NOVEMBER 6: Former U.S. President Donald Trump speaks to the media after completing his testimony at his trial in New York State Supreme Court on November 06, 2023 in New York City. Trump testified in the civil fraud trial that alleges that he and his two sons Donald Trump Jr. and Eric Trump conspired to inflate his net worth on financial statements provided to banks and insurers to secure loans. New York Attorney General Letitia James has sued seeking $250 million in damages. His sons testified in the trial last week and his daughter Ivanka Trump is scheduled to testify on Wednesday after her lawyers were unable to block her testimony. (Photo by David Dee Delgado/Getty Images)
President Donald Trump speaks to the media after completing his testimony at his trial in New York State Supreme Court on November 06, 2023 in New York City (David Dee Delgado/Getty Images)

“Ms James repeatedly called President Trump a 'criminal'; promised to 'investigate President Trump and his business transactions,' 'review Trump-related real estate transactions,' and 'take on his business in New York'; and threatened President Trump's 'family' and 'anyone in his orbit," the document states. 

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