Justice Arthur Engoron sits in his court room during the civil fraud trial of-gh President Donald Trump at New York State Supreme Court on October 24, 2023 in New York City. (Photo by Mike Segar-Pool/Getty Images)
The New York Appellate Division tossed the penalty, ruling the fine was excessive and violated the Eighth Amendment.
The five-member panel upheld findings that Trump and his company were liable, affirming James acted within her authority and that injunctive relief against the Trump Organization was appropriate.
The ruling left liability intact but wiped out the $364 million penalty plus interest, which totaled about $500 million.
Justice Arthur Engoron presided over the civil fraud trial of President Donald Trump and his children at New York State Supreme Court on November 13, 2023 in New York City. ((Photo by Erin Schaff-Pool/Getty Images))
Friedman said Trump’s business deals involved sophisticated parties who profited without harming the public and concluded he would "reverse the judgment and dismiss the complaint."
With judges split on liability, the case is likely headed to New York’s highest court, the Court of Appeals. James said she will appeal.
James, a Democrat elected in 2018, has long targeted Trump. On the campaign trail, she called him an "illegitimate president" and vowed to "use every area of the law" to investigate him and his businesses.
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Since Trump returned to office, the Justice Department has opened investigations tied to the case brought against Trump and also over allegations she committed mortgage fraud herself.
James alleges Trump is using the federal government to target her politically. DOJ is also investigating her for alleged mortgage fraud, including misrepresenting her primary residence on loans in Virginia and New York. She denies the claims and calls the probe a "revenge tour" for the civil fraud suit.
Fox News Digital’s Michael Dorgan and Maria Paronich contributed to this report.
Greg Wehner is a breaking news reporter for Fox News Digital.
Story tips and ideas can be sent to Greg.Wehner@Fox.com and on Twitter @GregWehner.
https://www.foxnews.com/politics/trump-wins-major-appellate-ruling-attacks-judge-who-oversaw-new-york-fraud-trial