6 thoughts on “New York is a “Loser State”

  1. O’Leary is right.. New York is a loser state. There should be a great awakening with the pols in NY but I doubt it )-:

    Re Trump’s case.. he should win at the appellate level and if not surely at the SCOTUS.

    1. Fred, Kathy Hochul doesn’t outright want to say that businesses need not worry because this was a politically targeted prosecution against Trump only. She can’t admit that. But New York, even though it has lost lots of people and companies to other parts of the country, has not yet faced its reckoning.

      Fred, can Trump appeal a state court decision to the SCOTUS? It seems there is an “ex post facto” issue with the changing of the statutes of limitations, at the very least.

  2. TC: I am told by an attorney that Trump can appeal a state court decision to the SCOTUS.

    He may be wrong. I dunno.

  3. Jonathan Turley :

    ” Oscar Wilde wrote that “moderation is a fatal thing. Nothing succeeds like excess.” Justice Arthur Engoron took that line to heart with his absurd imposition of $455 million in fines and interest against Donald Trump and his corporation.

    It succeeded wonderfully with New Yorkers, who celebrated the verdict like a popular public execution. It also worked wonderfully to make it difficult to appeal.

    Much of the criticism of the decision focused on the unprecedented use of the law and the excessive size of the fine. The New York statute has been on the books for decades and has always been something of an anomaly in not requiring an actual victim or loss to justify disgorgement or fines.

    Even the New York Times agreed that it could not find a single case in history where this statute was used against an individual or a company that did not commit a criminal offense, go bankrupt, or leave financial victims.

    Engoron then combined that unprecedented application with an equally extraordinary penalty, which is greater than the gross national product of some countries.

    He disgorged hundreds of millions in a case where not one dollar was lost by anyone. Indeed, the “victims” wanted to get more business from Trump and are now being prevented from doing so by Engoron.

    There is also an added inequity to Engoron’s decision.

    Under New York law, Trump cannot appeal this ruling without depositing the full amount, including interest, in a court account. Even for Trump, $455 million is hard to come by. Likewise, a bond would require a company to guarantee payment for a defendant who has been barred from doing business in New York and is facing the need to liquidate much of his portfolio.

    Nothing succeeds like excess for judges like Engoron. By imposing this astronomical figure, he can make it difficult or impossible for a defendant to appeal, absent declaring bankruptcy or selling off assets at distress prices.

    The excessive fine and its basis raise serious statutory and constitutional questions. Many of us believe it should be substantially reduced or tossed out entirely.

    First, however, Trump must come up with almost half a billion dollars to park with the court. Even with a bond, the high costs of securing a guarantor could come at a premium. It would cost a fortune to the bond holder just to carry the risk even if Trump prevails on appeal.

    The combination of the draconian fine and the threshold deposit for appeal has produced a shudder throughout the New York business community. The city is already experiencing an exodus of businesses and individuals from the top tax brackets. Rising crime, taxes, and eat-the-rich politics have made New York a hostile environment for businesses. At a time with rising costs from undocumented migrants, even Mayor Eric Adams is alarmed about the loss of his high earners.

    The case brought by Attorney General Letitia James was unnerving for many. James previously sought to dissolve the National Rifle Association and campaigned on bagging Trump on some unnamed offense. The ecstasy expressed by many in the city reinforced the image of a thrill-kill chase around the island of Manhattan, like a corporate version of “Lord of the Flies.”

    Watching the celebrations probably caused many executives to check time shares in Florida. New York Gov. Kathy Hochul has rushed to assure businesses that there is “nothing to worry about” after the corporate public execution of Trump and his company.

    1. Fred, the level of jubilation in New York over the decision is a function of the partisan demographics in the Empire State but also because of the large Jewish population there that is very influential. Engoron is a Jewish surname, of course. There is a level of viciousness that we really need to be concerned about.

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