New York Justice Arthur Engoron sent shockwaves through the political world when he issued a summary judgment that appeared to dissolve the Trump Organization, or at least remove former President Donald Trump and his family from control of it, in the civil fraud trial brought by state Attorney General Letitia James.
But according to The New York Times, that decision may have been premature, as it's not clear he actually has the authority to do such a thing.
"The decision set off a firestorm and appeared to imperil much of Mr. Trump’s New York empire. But interviews with legal experts and a review of court rulings suggest that the judge may have lacked the authority to dissolve the companies," reported Ben Protess, Jonah E. Bromwich, Kate Christobek, and William K. Rashbaum.
"An appeals court last week granted Mr. Trump’s request to pause the punishment so it could consider Justice Engoron’s ruling. That could presage a more thorough assessment of the judge’s decision-making throughout the trial; Mr. Trump’s lawyers have placed their hopes on an appeal."
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"Alternatively, Justice Engoron could adjust the order himself," said the report. "If Mr. Trump’s lawyers persuade him, he could use the expected January verdict to change his position before the appeals court has its say."
Engoron's summary judgment already ruled for James on the merits of the case, which alleged that Trump and his two adult sons systematically lied about the value and even square footage of their properties in order to manipulate their loan and tax treatment. Trump has denied any fraud, saying that real estate values are inherently subjective and he repaid all of the loans anyway.
This comes amid an ongoing fight about a gag order issued against Trump in the case, that prohibits him from attacking court staff. An appellate court denied Trump's effort to appeal that order on Thursday.
