A federal appeals court Friday revived a lawsuit against President Trump, saying restaurant and hotel owners in New York and D.C. should be able to challenge the president’s business interests tied to his family-owned hotels.
The lawsuit, brought by people in the hospitality industry, appealed a lower court dismissal, after the Southern District of New York said they didn’t have a specific injury needed to substantiate their legal claim that the president violated the Emoluments Clause of the Constitution. The provision is meant to prevent government officials from receiving benefits and gifts from foreign interests.
The plaintiffs argue they are being financially harmed when foreign and domestic government officials go to the Trump-owned establishments instead of their own places of business. The suit is seeking to force the president to divest from the Trump Organization.
“The complaint sufficiently alleges that plaintiffs compete directly with Trump establishments and that the president’s allegedly illegal acts favor plaintiffs’ competitors,” Judge Pierre N. Leval, a Clinton appointee, wrote for the 2nd U.S. Circuit Court of Appeals.
The 2-1 decision revives the lawsuit and sends it back to the district court for further review.
Judge John M. Walker, a George H.W. Bush appointee, dissented, saying the plaintiffs’ claims should have been dismissed. He also cautioned courts to avoid the legal conflict since it’s highly political.
“This case is deeply political and thus finds itself in an area where federal courts ought to tread lightly,” the judge wrote. “President Trump was democratically elected by the American people — and he was elected with his business holdings and brand prominence in full view.”
The 2nd Circuit’s decision contrasts the 4th U.S. Circuit Court of Appeals, which dismissed a similar lawsuit brought by attorneys general in a Maryland court in July.
• Corrected from an earlier version: Judge Walker was appointed to a federal District Court by President Reagan, but received his later appointment to the Circuit Court bench from President George H.W. Bush.
• Alex Swoyer can be reached at aswoyer@washingtontimes.com.
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