Politics

New Lawsuit Claims Foreign Payments To Trump Biz Violates The Constitution

REUTERS/Darren Ornitz/File Photo

Daily Caller News Foundation logo
Kevin Daley Supreme Court correspondent
Font Size:

A new lawsuit filed by a liberal advocacy organization Monday in federal court alleges that President Donald Trump is in violation of the Constitution’s Emoluments Clause.

The clause precludes federal officials from accepting gifts from foreign powers. The lawsuit argues Trump is violating the clause because many of his firms do business with foreign governments. Among other alleged violations, lawyers point to space the Chinese government rents at Trump Tower in New York as an example of an unconstitutional emolument. China also helped finance another property in which Trump holds a significant stake.

“The framers of the Constitution were students of history,” Deepak Gupta, one of the lawyers behind the suit, told the New York Times. “And they understood that one way a republic could fail is if foreign powers could corrupt our elected leaders.”

Eric Trump, executive vice president of the Trump Organization, called the suit a political stunt.

“This is purely harassment for political gain, and, frankly, I find it very, very sad,” he said.

During a brief exchange with the press on Monday morning in the Oval Office, the president said the challenge was “totally without merit.”

The lawsuit is organized by an advocacy group called Citizens for Responsibility and Ethics in Washington (CREW). A number of accomplished lawyers and legal scholars are leading the effort, including Laurence Tribe, the legendary Harvard Law School professor; Erwin Chemerinsky, dean of the law school at the University of California, Irvine; and Richard Painter, an ethics lawyer in the George W. Bush White House.

Other legal scholars are dubious of their theory of the Emoluments Clause. Professor Andy Grewal of the University of Iowa College of Law argued in a recent paper that transactions conducted between foreign governments and the Trump Organization do not violate the Constitution, because Trump does not himself participate in those transactions.  He argues the term “emolument” refers to specific benefits individuals accrue by personally providing services, and does not reach ordinary exchanges done at market value by business entities that they might own. (RELATED: Jared Kushner Can Lawfully Work In The White House, Justice Dept. Says)

Before reaching arguments on the merits, the group will have to prove it has the right to bring the lawsuit in the first place. To bring a suit against another person or entity, plaintiffs must demonstrate that they have “standing” to sue. Therefore, CREW must demonstrate that they are injured in some fashion by the Trump Organization’s dealings with foreign governments. What’s more, that injury must be a specific and particularized, not generalized or theoretical harm.

Ian Milhiser of ThinkProgress, a liberal legal commentator who is skeptical of the suit, argues a business competitor may have an easier time establishing standing. That view is also shared by Brianne Gorod, chief counsel at the Constitutional Accountability Center. Milhiser also notes that, as the Supreme Court explained in Lujan v. Defenders of Wildlife — an important standing case — that a plaintiff must show a “causal connection between the injury and the conduct complained of,” which could prove a tall order for CREW.

For their part, CREW points to a 1982 Supreme Court decision that allowed a civil rights group to sue a landlord after it deployed black clients to broach the possibility of signing a lease with building managers. In the past, those arguments have received a friendly hearing from the 2nd U.S. Circuit Court of Appeals, and the federal court in New York City, where this lawsuit will be filed.

It is not yet clear who will represent Trump in the litigation.

Follow Kevin on Twitter

Send tips to kevin@dailycallernewsfoundation.org.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel