An opinion piece in the Wall Street Journal - also defends Musk. In Trump's NY case, since there were no victims, the state gets the $350 million plus.
Every American has a right to be critical of Mr. Trump’s politics—one of us ran against him in 2016—or Mr. Musk’s public persona. But equality before the law is precious, and these rulings represent a crisis not only for the soundness of our courts, but for the business environment that has allowed the U.S. to prosper. If these rulings stand, the damage could cascade through the economy, creating fear of arbitrary enforcement against entrepreneurs who seek public office or raise their voices as citizens in a way that politicians dislike.
***************************
In New York, Judge Arthur Engoron ordered Mr. Trump to pay more than $350 million in a civil fraud judgment for inflating the value of his real-estate holdings. That case was brought by Attorney General Letitia James, who ran for office in 2018 on a promise to target the man she called “an illegitimate president.”
The unusual New York law Ms. James used to investigate and sue Mr. Trump didn’t require her to prove that he had intended to defraud anyone, or even that anyone lost money. The Associated Press found that of the 12 cases brought under that law since its adoption in 1956 in which significant penalties were imposed, the case against Mr. Trump was the only instance without an alleged victim or financial loss. Bankers from Deutsche Bank, which lent money to Mr. Trump, testified that they were satisfied with having done so, given they were paid back on time and with interest. They also testified that they were uncertain whether the alleged exaggerations would have affected the terms of the loans to Mr. Trump—a key part of Ms. James’s case. Since there were no victims, the state will collect the damages.
*************************
... blue-state politicians may have the satisfaction of “sticking it” to Messrs. Trump and Musk, but the loss to those states will be significant. The damage to the legal fabric of the country will be even worse. A dispassionate justice system is at the heart of American exceptionalism, and the country will be poorer if we lose it.
Mr. Bush served as governor of Florida, 1999-2007. Mr. Lonsdale is a founder of Palantir and managing partner of 8VC.
Comments