Former US President Donald Trump questions as he speaks to the media during a break as he attends a civil fraud trial filed by state Attorney General Letitia James against him, his adult children, Trump Organization and others in New York City, October 4, 2023.
Mike Segar | Reuters
A New York appeals court on Friday declined to stay the ongoing civil business fraud trial of Donald Trump and his company, but halted a judge’s order to cancel the business certificates of Trump companies in state.
The decision comes after Trump’s business fraud trial wrapped up its first week of proceedings in Manhattan Supreme Court.
New York Attorney General Letitia James has opposed halting Trump’s trial pending his appeal of a pretrial judge’s ruling that he is liable for business fraud in the case. But he did not object to Trump’s request that a related judge’s ruling, which canceled a series of corporate business certificates, be stayed pending the outcome of the appeal.
James’ office said in a statement that the company’s certificates have not been canceled and the AG’s office proposed to put someone in place to oversee that process, with possible names due later this month. this.
The current litigation deals with James’ $250 million lawsuit against Trump, the Trump Organization, his two grown children and top company executives.
Christopher Kise, Trump’s attorney, said in a statement, “We are very pleased that the First Department upheld New York law and stopped any cancellation of business certificates, receiverships or dissolution. The trial court’s attempt to reach issues, entities and assets beyond the scope of this case is suspended.”
“Unsurprisingly, he is twisting this ruling and falsely claiming victory for a resolution we proposed,” James said in a statement. “The truth is simple: a judge ruled that he committed repeated and persistent fraud, and we will continue to show that in court.”
Manhattan Supreme Court Judge Arthur Engoron issued a summary judgment last month in which James proved his central claim that the defendants committed business fraud. Engoron canceled the business certificates of Trump companies as part of that search.
The trial addresses the remaining six claims in the suit.
Friday’s decision upholding the cancellations but allowing the trial to continue came from a justice in the appellate division that handles cases originating in Manhattan Supreme Court.
— CNBC’s Kevin Breuninger contributed to this report
