Crux of Trump's Challenge to NY Tax Returns Law Must Fail if State Official Is Let Out
Attorneys for New York state also made clear, in their filing to U.S. District Judge Carl Nichols of the District of Columbia, that Trump is a resident, and registered voter, of New York.
September 26, 2019 at 05:38 PM
5 minute read
Part of President Donald Trump's challenge to a New York state law that would allow Congress to obtain copies of his state tax returns should be dropped if a federal judge lets a New York state tax official out of the litigation, the New York Attorney General's Office argued this week.
Attorneys for New York state also made clear, in their filing to U.S. District Judge Carl Nichols of the District of Columbia, that Trump is a resident, and registered voter, of New York.
It's unclear, at this point, whether that will add weight to the state's motion to either have the lawsuit dismissed against State Tax Commissioner Michael Schmidt and New York Attorney General Letitia James, or at least transferred to federal court in Manhattan.
Patrick Strawbridge, an attorney representing Trump from Consovoy McCarthy, was hesitant to say whether Trump was a resident of the state during arguments on the motion last week. Nichols had posed the question to attorneys during the hearing.
"This might not even matter, but is Mr. Trump still a New York citizen?" Nichols asked. "A New York citizen attempting to sue New York defendants but doing all of that in D.C. is a little different than a D.C. citizen."
Attorneys for New York state appeared to consider the distinction an important one, according to their new filing this week. The New York Attorney General's Office wrote in the letter to Nichols that they searched for, and found, Trump on the state's voter rolls.
"Mr. Trump's voter registration status in this directory currently lists him as a registered voter under his Trump Tower address in Manhattan and indicates his voter status is 'active,'" the filing said.
But that point was more of an afterthought to the larger argument of the three-page letter: that a major part of Trump's lawsuit should be thrown out if Nichols allows Schmidt to exit the litigation.
Trump's attorneys are challenging the ability of Congress to take advantage of a New York state law, called the TRUST Act, that would allow certain committee chairpersons to request a copy of the president's state tax returns from the New York State Department of Taxation and Finance.
Schmidt is one of a handful of defendants on the suit, along with James, the House Ways and Means Committee, the committee's tax counsel, and Rep. Richard Neal, a Democrat from Massachusetts who chairs the committee.
There are two counts, or alleged statutory violations, to the lawsuit. The first alleged that Congress wouldn't be able to use the law, anyway, because the information would be about Trump's state taxes, which federal lawmakers don't regulate.
The second count claimed that lawmakers in New York passed the law solely to expose Trump's financial information for political gain. Trump's attorneys have said the law violates the First Amendment because it could be used to retaliate against the president for his political views.
Attorneys for New York argued in the filing to Nichols this week that if he grants their motion to take Schmidt off the lawsuit, the second count should be severed and tossed out.
That's because, they wrote, Trump wouldn't be able to challenge the constitutionality of the TRUST Act without Schmidt as a defendant. Because he's the state official who would disclose Trump's state taxes to Congress, he's the only party that could be sued to strike down the law, they wrote.
"Because it is the authority granted to the commissioner under the TRUST Act to provide Mr. Trump's state tax returns in response to a request that gives rise to the claimed injury," the filing said, "Mr. Trump cannot 'invalidate' that statutory authority by pursuing a claim only against the House Defendants in a proceeding where the commissioner is not a defendant at all."
To decide otherwise, attorneys for New York wrote, would be unreasonable as a matter of due process. If Trump is allowed to proceed on both counts without Schmidt as a defendant, that would presumably mean he could have filed the suit in one of several jurisdictions.
The TRUST Act allows the chairpersons of three congressional committees to make a request to New York for Trump's tax returns, as well as those of just about any other elected or appointed official in New York.
Attorneys for New York argued that, if Nichols agrees with Trump's attorneys, that would presumably mean the president could have also sued over the TRUST Act in jurisdictions where those federal lawmakers have district offices, like Massachusetts or Iowa.
"Under Mr. Trump's theory, he could bring suit in any of these jurisdictions, and obtain an adjudication on the constitutionality of the TRUST Act's grant of authority to the commissioner without the participation of the commissioner as a defendant, based on nothing more than the prospect that a request for New York tax returns might originate from there," the filing said.
Strawbridge did not immediately respond to a request for comment on the letter. Nichols did not indicate during the hearing last week when he was planning to hand down a decision on the motion.
READ MORE:
DC Judge in Trump Tax Returns Case Agonizes Over a Bunch of What-Ifs
Trump's Lawyers Mount New Effort to Keep DC Judge on Tax Returns Lawsuit
After Speedy Subpoena Cases, Trump Tax Disputes Linger
NY AG Rebukes Trump Claim of Coordination With Congressional Democrats
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllRelaxing Penalties on Discovery Noncompliance Allows Criminal Cases to Get Decided on Merit
5 minute readBipartisan Lawmakers to Hochul Urge Greater Student Loan Forgiveness for Public-Interest Lawyers
'Playing the Clock'?: Hochul Says NY's Discovery Loophole Is to Blame for Wide Dismissal of Criminal Cases
So Who Won? Congestion Pricing Ruling Leaves Both Sides Claiming Victory, Attorneys Seeking Clarification
4 minute readTrending Stories
- 1‘Catholic Charities v. Wisconsin Labor and Industry Review Commission’: Another Consequence of 'Hobby Lobby'?
- 2With DEI Rollbacks, Employment Lawyers See Potential For Targeting Corporate Commitment to Equality
- 3In-House Legal Network The L Suite Acquires Legal E-Learning Platform Luminate+
- 4In Police Shooting Case, Kavanaugh Bleeds Blue and Jackson ‘Very Very Confused’
- 5Trump RTO Mandates Won’t Disrupt Big Law Policies—But Client Expectations Might
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250