New York Appeals Court Overturns Trump’s $500 Million Civil Fraud Penalty
A New York appeals court ruled that the $500m civil penalty against former President Trump was excessive and unconstitutional, despite affirming his liability for fraud.
New York Appeals Court Decision
The Appellate Division of New York Supreme Court has overturned the $500 million civil fraud penalty imposed on former President Donald Trump in April last year. The court affirmed that Trump and the Trump Organization had engaged in fraud but found the sanction excessive under the Eighth Amendment’s prohibition on excessive fines.
Background of the Case
Judge Arthur Engoron had ruled that Trump inflated property values to secure favorable loans, ordering a $355 million penalty that, with accrued interest, exceeded $500 million. Trump’s legal team argued the amount was punitive and violated constitutional limits.
Implications and Next Steps
The appeals court’s ruling remands the case to the lower court to reconsider the penalty amount. Legal experts say the decision could reshape how courts calculate financial sanctions in civil fraud cases.
New York’s appellate panel confirmed Trump’s liability for fraud but ruled that the half-billion-dollar fine violated constitutional protections against excessive punishments.
This topic was reported by BBC News.
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