Judge’s ruling on Trump hotel could open up financial records
WASHINGTON — A federal judge ruled Wednesday that Maryland and the District of Columbia can proceed with their lawsuit accusing President Donald Trump of unconstitutionally accepting payments from foreign and state interests through his Washington hotel.
The decision clears the way for the plaintiffs to seek financial records and other materials from the president’s company.
In his ruling, U.S. District Judge Peter Messitte, based in Maryland, rejected arguments from the Justice Department that earnings from business activities, including hotel room stays, do not qualify as unconstitutional gifts. At issue is the Constitution’s emoluments clause, which bans federal officials from accepting benefits from foreign or state governments without congressional approval. The plaintiffs argue Trump’s hotel harms area businesses because of the president’s ties.
Messitte’s ruling was the first time a federal judge has interpreted the emoluments clause, which had never been fully tested in an American courtroom.
In his 52-page opinion, the judge said attorneys general for Maryland and the District had “convincingly argued” that the Constitution treats emoluments “as any ‘profit,’ ‘gain,’ or ‘advantage.’ ”
“The Court finds the President is subject to both Emoluments Clauses of the Constitution and that the term ‘emolument’ in both clauses extends to any profit, gain or advantage,” Messitte wrote.
The judge ordered both sides to provide a schedule of their next steps within 21 days.
A spokesman for the Justice Department, Andy Reuss, said the administration continues “to maintain that this case should be dismissed.” Reuss added that the department “is reviewing the order and determining next steps to continue vigorously defending the president.” They could appeal Messitte’s ruling to a federal appeals court.
Declaring Messitte’s ruling a “series of common sense conclusions,” Maryland Attorney General Brian Frosh said Wednesday that he expected both jurisdictions to press for a wide range of financial documents and related materials from the Trump Organization and Trump International Hotel.
Among the documents likely sought by the plaintiffs, Frosh said, would be several years of the president’s income taxes.
Norman Eisen, a former Obama administration ethics counsel, said the ruling represented a “major leap forward” in learning “how Trump is profiting off the presidency.”
“It is another major crack in the dam that has so far been holding back accountability,” said Eisen, who chairs Citizens for Responsibility and Ethics in Washington.