A federal appeals court in New York breathed new life into a case alleging President Trump violated the Constitution’s Emoluments Clause through his continued financial interest in properties in New York City and Washington, D.C.
The 2nd U.S. Circuit Court of Appeals on Friday tossed out a lower court ruling dismissing the court challenge and reinstated the case, leaving the president to defend against accusations he is unconstitutionally profiting off the presidency.
The divided three-judge panel did not say whether it believes Trump violated the Emoluments Clause by serving domestic and foreign governments at his properties but instead said the plaintiffs who brought the case have the legal right to sue. A federal district court had dismissed the case in 2017 after determining the plaintiffs lacked standing to bring the suit.
“The complaint sufficiently alleges that plaintiffs compete directly with Trump establishments and that the president allegedly illegal acts favor plaintiffs’ competitors,” the appeals court said in its ruling.
The Emoluments Clause bars presidents from accepting gifts or money from foreign governments unless they receive congressional approval. The president’s business rivals argue they serve foreign and domestic clientele at their properties and are “direct competitors” of properties owned by Trump in both Washington, D.C., and New York City.
Because foreign and domestic government officials are patrons of Trump-owned hotels, restaurants, and event spaces, the revenues of Trump’s establishments “are substantially … personal revenues of the president,” the 2nd Circuit said.
Noah Bookbinder, executive director of the left-leaning watchdog Citizens for Responsibility and Ethics in Washington, which brought the lawsuit against the president, applauded the appeals court’s decision.
“We never wanted to be in a position where it would be necessary to go to court to compel the President of the United States to follow the Constitution. However, President Trump left us no choice, and we will proudly fight as long as needed to ensure Americans are represented by an ethical government under the rule of law,” Bookbinder said in a statement. “If President Trump would like to avoid the case going further and curtail the serious harms caused by his unconstitutional conduct, now would be a good time to divest from his businesses and end his violations of the Emoluments Clauses of the Constitution.”
The ruling from the 2nd Circuit could force the president to defend his business in court, as well as disclose his business and personal finances.
Trump has seen mixed results in similar Emoluments Clause challenges brought in federal court. In July, a federal appeals court in Virginia dismissed a lawsuit brought by the attorneys general of Maryland and the District of Columbia, ruling they lacked the legal standing to bring the suit.
