Arkansas Democrat-Gazette

Filing: Hush-money deal invalid

President withdraws threats to sue Daniels, his attorney says

- COMPILED BY DEMOCRAT-GAZETTE STAFF FROM WIRE REPORTS Informatio­n for this article was contribute­d by Michael Balsamo and Catherine Lucey of The Associated Press; and by Alan Feuer of The New York Times.

WASHINGTON — President Donald Trump does not believe porn actress Stormy Daniels’ hush-money deal, which his former personal lawyer said was done to influence the 2016 presidenti­al election, is valid and will not carry out threats to sue her for breaking the agreement by discussing details of their alleged affair, Trump’s attorney said in a court filing Saturday.

Hours earlier, an attorney for the company set up to handle the deal offered to rescind Daniels’ nondisclos­ure agreement. The company, Essential Consultant­s, also scrapped a threatened $20 million lawsuit against Daniels.

In a letter dated Friday, ex-Trump “fixer” Michael Cohen’s lawyer, Brent Blakely, wrote to Daniels’ lawyer, Michael Avenatti, saying that Cohen had agreed “to accept the rescission” of the deal, which was reached in October 2016, a month before the presidenti­al election.

Under the terms of the arrangemen­t, Essential Consultant­s LLC, a shell company Cohen created, paid Daniels $130,000 not to speak publicly about a sexual relationsh­ip she said she began with Trump in 2006 after they met at a celebrity golf tournament in Nevada.

Shortly after the letter was filed in U.S. District Court in Los Angeles, Avenatti accused Cohen on Twitter of “playing games and trying to protect Donald Trump.”

Cohen is “now pulling a legal stunt to try and ‘fix it’ so that we can’t depose Trump and present evidence to the American people about what happened,” Avenatti said.

Blakely, who is based in Los Angeles, did not immediatel­y respond to efforts to reach him, but in an interview Saturday morning, Avenatti insisted that the offer was “dead on arrival.”

Avenatti added that he would accept the offer only if both Cohen and Trump acknowledg­ed that the nondisclos­ure deal was illegal from the start because it violated federal campaign finance laws.

Last month, Cohen admitted to precisely that, acknowledg­ing in a guilty plea in a Manhattan federal courtroom that he had broken campaign finance laws in structurin­g the deal with Clifford. In his plea, Cohen said he had struck the arrangemen­t not only at Trump’s request but also to influence the election.

The offers would remove any legal risk to Daniels stemming from her public discussion of the alleged affair and the alleged efforts to hide it. But if a court were to find that the proposal resolved the underlying controvers­y in her litigation with Cohen, the developmen­t could kill efforts by Avenatti to try to compel the president to give sworn testimony.

Daniels, whose real name is Stephanie Clifford, has said she had sex once with Trump in 2006 and carried on a platonic relationsh­ip with him for about a year. She was paid $130,000 as part of the agreement signed days before the 2016 election and is suing to dissolve the contract. Daniels has argued the agreement should be invalidate­d because Cohen signed it, but Trump did not.

In Saturday’s court filing, Trump’s attorney, Charles Harder, said the president doesn’t dispute Daniels’ assertion that the contract isn’t valid and never considered himself as a party to the agreement. Both Trump and Cohen have asked Daniels to now drop her lawsuit.

In addition to the offer to quash the agreement, Essential Consultant­s also agreed to back off its plan to fight Daniels in private arbitratio­n and will not pursue a lawsuit against her, Blakely said in the letter to Daniels’ lawyer. Cohen had said that Daniels could owe $20 million for violating the agreement.

The company wants Daniels to repay the $130,000 she was paid, Blakely wrote.

Avenatti told The Associated Press that he did not have to accept the offer and would not settle the case without deposing Trump and Cohen. He said he was still reviewing his options but wasn’t worried about the developmen­ts.

Avenatti said he thought Harder’s court filing was “worthless,” had “numerous problems” and “means nothing.”

“We are tired of the constant delays and games being played,” he said. “We want these deposition­s as soon as possible.”

Regardless of how a court views the offer by Trump and Cohen’s company to drop efforts to enforce the agreement, Avenatti has other possible legal routes to pursue the president. Daniels is also suing Trump and Cohen for defamation.

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