by Emmitt Barry, with reporting from Washington D.C. Bureau Staff
(Worthy News) – A New York appellate court on Thursday struck down a $515 million civil fraud judgment against President Donald Trump, ruling that the massive penalty violated the Eighth Amendment’s prohibition on excessive fines.
The five-judge panel’s decision is a major legal victory for Trump, who has repeatedly claimed that the fraud case brought by New York Attorney General Letitia James was politically motivated.
Divided Ruling, Major Implications
Judge Arthur Engoron originally imposed a $355 million penalty in February 2024 after finding Trump had fraudulently inflated the value of his real estate assets to secure favorable loans and insurance deals. With interest, the total soared past half a billion dollars by August.
In a splintered 323-page decision, the appeals court vacated the monetary penalty while leaving parts of the case intact. Writing in a concurring opinion, Justice Peter Moulton said the fine “was an excessive sanction that cannot be squared with the Eighth Amendment.”
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half-billion-dollar award to the State,” Moulton wrote.
Justice David Friedman went further, calling for the case to be dismissed outright. He accused James of overstepping her authority, arguing that her lawsuit empowered the attorney general “to attack, at will, virtually any business transaction … in the absence of any discernible effect on the public.”
Other justices, however, said James acted lawfully under New York’s civil fraud statute and upheld certain restrictions imposed on the Trump Organization, including temporary limits on borrowing and management by Trump’s sons.
Trump Celebrates “TOTAL VICTORY”
Trump declared the ruling a “TOTAL VICTORY” on his Truth Social platform, writing that the court “had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business throughout New York State.”
His attorney Alina Habba also praised the ruling, calling it “a resounding victory” and insisting the case was “politically motivated, legally baseless, and grossly excessive.”
James’s Case and Next Steps
James launched her investigation in 2019 after Trump’s former lawyer, Michael Cohen, testified before Congress that Trump had inflated asset values. Her office alleged that Trump exaggerated his net worth by as much as $3.6 billion and misled lenders with inflated valuations of properties, including Trump Tower in Manhattan.
Despite Thursday’s ruling, parts of the case remain alive, and the appellate panel’s split ensures that New York’s highest court, the Court of Appeals, will likely have the final word.
For now, Trump avoids a crushing financial blow that threatened his real estate empire. Last year, he posted a $175 million bond to pause enforcement of Engoron’s judgment while appeals proceeded.
The attorney general’s office did not immediately comment on the ruling.
Reporting contributed by Worthy News staff and wire services.
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
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