Court reinstates lawsuit over Trump's hotel profits

A federal appeals court has revived a lawsuit accusing President Donald Trump of illegally profiting off the presidency through his luxury Washington hotel.

The lawsuit brought by the state of Maryland and the District of Columbia claimed Trump has violated the emoluments clause of the Constitution by accepting profits through foreign and domestic officials who stay at the Trump International Hotel.

U.S. District Judge Peter Messitte refused to dismiss the lawsuit, but his ruling was overturned in July by a three-judge panel of the Richmond-based 4th U.S. Circuit Court of Appeals. The judges found that the two jurisdictions lack standing to pursue their claims against the president and granted a rare writ of mandamus, directing Messitte to throw out the lawsuit.

But on Thursday, the panel's ruling was overturned by the full court of 15 judges. In a 9-6 ruling, a divided court found that the three-judge panel overstepped its authority when it ordered Messitte to dismiss the lawsuit.

The hotel, just blocks from the White House, quickly became a hot spot for lobbyists and foreign officials after it reopened in 2016 shortly before Trump was elected president.

Trump’s lawyers had argued that Maryland Attorney General Brian Frosh and District Attorney General Karl Racine — both Democrats — lack authority to sue the president in his official capacity. They also insisted that the emoluments clause only bars compensation made in connection with services provided in his official capacity or in “an employment-type relationship” with a foreign or domestic government.

Frosh and Racine argued that hotels in their jurisdictions suffer “competitive injury” because officials hoping to curry favor with the president are more likely to stay at his hotel.

In October, Trump’s company said it is exploring the sale of the hotel after nearly three years of complaints alleging he is profiting off the presidency. The Trump Organization said it will consider offers to buy out the 60-year lease on the hotel.

The lawsuit brought by Maryland and the District of Columbia was one of several that accuse Trump of illegally profiting off the presidency through his business interests.

In February, a federal appeals court in Washington dismissed a lawsuit filed by Democratic members of Congress who accused the president of violating the emoluments clause by accepting benefits to his businesses from foreign governments without congressional approval.

The court did not rule on whether Trump violated the law. It just found that the 29 senators and 186 members of the House of Representatives involved in the lawsuit “do not constitute a majority of either body" of Congress and therefore didn't have the power to bring the lawsuit.