Lawsuit: President Trump’s businesses violate Constitution

FILE - In this Friday, Jan. 20, 2017, file photo, President Donald Trump leaves the President's Room of the Senate at the Capitol . (AP Photo/J. Scott Applewhite, Pool, File)

 

NEW YORK (AP) — To fight what it called a “grave threat” to the country, a watchdog group on Monday filed a lawsuit alleging that President Donald Trump is violating the Constitution by allowing his business to accept payments from foreign governments.

The lawsuit claims that Trump is violating a clause in the Constitution that prohibits him from receiving money from diplomats for stays at his hotels or foreign governments for leases of office space in his buildings. The language in the clause is disputed by legal experts, and some think the suit will fail, but it signaled the start of a legal assault by Trump critics on what they see as unprecedented conflicts between his business and the presidency.

Trump called the lawsuit “without merit, totally without merit” after he signed some of his first executive orders Monday in the Oval Office.

The liberal-funded watchdog group Citizens for Responsibility and Ethics in Washington filed the lawsuit in the Southern District of New York.

The group is being represented by two former White House chief ethics lawyers: Norman Eisen, who advised Barack Obama, and Richard Painter, who worked under George W. Bush. The two have expressed frustration that Trump has refused to take their recommendation and divest from his business, and feel they had no choice but to take legal action.

“As the Framers were aware, private financial interests can subtly sway even the most virtuous leaders,” the lawsuit argues, “and entanglements between American officials and foreign powers could pose a creeping, insidious threat to the Republic.”

READ MORE: President Trump will not release his tax returns

White House Director of Strategic Communications Hope Hicks said that “the president has no conflicts,” and referred to arguments made by Trump lawyer Sheri Dillon at the president’s press conference earlier this month.

Dillon has said the framers did not intend for the so-called emoluments clause of the Constitution to ban fair-value exchanges, such as paying for a hotel room or venue space at a hotel.

The framers did not think “paying your hotel bill was an emolument,” Dillon said at a news conference.

Trump drew fresh legal attacks from legal critics almost from the moment he took the oath of office on Friday.

The American Civil Liberties Union tweeted within minutes that it had filed a request under the Freedom of Information Act that government agencies hand over memos, emails and other private communications with Trump’s transition team on the conflicts issue. The group also issued a complaint on Friday to the General Services Administration, an agency that oversees the lease of the Old Post Office building for use as Trump’s new hotel in Washington, arguing that Trump must give up the hotel because an elected official can’t be a party to the lease.

In the new lawsuit, the group faces several legal hurdles, including making the case that it even has standing to bring the lawsuit.

“We have never had a president who has in a significant way accepted foreign payments.” said Noah Bookbinder, executive director of Citizens for Responsibility. “There are a lot of issues that have to be litigated for the first time.”

Bookbinder said his group will argue it has standing because the president’s violation has forced his organization to divert all it is resources to this fight rather than other issues, and therefore is harming it.

That line drew criticism from some legal experts.

“CREW’s argument for how it has standing to bring this lawsuit barely passes the laugh test,” said Robert Kelner, chairman of the election and political law group of the firm Covington & Burling and an experienced Republican attorney. “The courts will toss this one out.”

READ MORE: President Trump signs executive orders on trade deals, abortions

Edwin Williamson, a former State Department legal adviser, said that the group will struggle to prove its case. He said the emoluments clause does not apply the payment of a “market price” for a stay at a hotel.

“I don’t expect it to succeed,” Williamson, said, “and that doesn’t even get to the standing issue.”

In his news conference, Trump said that he would not sell his ownership in his company, but instead hand over control of his company to his two adult sons.

He announced several other measures in an attempt to mollify critics who contend that his financial interest as head of a global real estate company could conflict with his pursuit of the public good. He also vowed, for instance, that his company would strike no more deals abroad.

Trump also pledged to donate any profits from foreign governments using his hotels to the U.S. Treasury.

Trump has repeatedly said federal rules on conflicts do not apply to the president. His lawyer, Dillon, a partner a Morgan Lewis and Brockius, has called his moves to limit conflicts “extraordinary.” But the steps have been widely panned by government ethics lawyers as insufficient.

Eisen and Painter have urged Trump to sell his holdings and put the cash in a blind trust, following the example of recent presidents.

Trump has also defied the long tradition of presidential candidates making public their tax returns, saying he would be happy to do so after the completion of an Internal Revenue Service audit.

However, the first public petition to the new White House called for the immediate release of Trump’s tax documents, and it quickly amassed more than 250,000 signatures — well over the 100,000 needed to trigger an official response. The petition claims the returns are necessary to ensure Trump is not violating the emoluments clause of the Constitution.

Senior adviser Kellyanne Conway said over the weekend it’s not happening. “The White House response is that he’s not going to release his tax returns,” Conway said on ABC’s This Week. “We litigated this all through the election. People didn’t care.”

Eisen and Painter are joined in the lawsuit by Constitutional law scholars Erwin Chemerinsky, Laurence H. Tribe, Zephyr Teachout, and Deepak Gupta of the law firm Gupta Wessler.

 

NBC4i.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s