The state of Maryland and the District of Columbia sued in 2017, claiming Trump has violated the emoluments clause of the Constitution by accepting profits through foreign and domestic officials who stay at his Washington hotel.
But the U.S. Court of Appeals for the Fourth Circuit ruled that Maryland and Washington did not have legal standing to bring the claim, which Trump had asserted when he filed a motion to dismiss the complaint.
He touted his win over the "deep state" and the "Democrat induced witch hunt".
'Unanimous decision in my favor from The United States Court of Appeals For The Fourth Circuit on the ridiculous Emoluments Case.
The three-judge panel said the attorneys-general lacked legal standing to bring the case.
"The District and Maryland's interest in enforcing the Emoluments Clauses is so attenuated and abstract that their prosecution of this case readily provokes the question of whether this action against the President is an appropriate use of the courts", the court wrote in its ruling. He added, "This latest effort at presidential harassment has been dismissed with prejudice".
The lawsuit was filed previous year alleging that the earnings Trump receives from his hotel in the District violates the emoluments provision of the Constitution. The Foreign Emoluments Clause of the Constitution prohibits people holding office from accepting "any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state" without congressional consent.
Sen. Richard Blumenthal sued in federal court in D.C., and he's won several initial rulings, including that Mr. Trump's income from his hotels counts as emoluments.
"The decision states that there was no legal standing to bring this lawsuit in the first place", Sekulow said a statement.
The appeals court noted that writs of mandamus "are rarely given", but then accused the lower court judge of issuing a ruling that was "not 'guided by sound legal principles, ' but by 'whim'". It's for that reason - which the court noted was "ignored" by both the district court and the attorneys general - that no reasonable spectator could possibly draw a firm link between who pays Trump businesses and the profits the President derives from them.
The government lawyers also want the court to suspend legal discovery recently approved by U.S. District Judge Emmet Sullivan, which would force Trump-related entities such as his NY and D.C. hotels, Trump Tower, the Trump Organization, and Mar-a-Lago Club to turn over business tax returns, receipts and other documents.
A federal appeals court dismissed a case against President Donald Trump on July 10.
All three judges on the panel were nominated by Republican presidents: Paul Niemeyer, by George H.W. Bush; Dennis Shedd, by George W. Bush, and Judge A. Marvin Quattlebaum, by Trump.
The Department of Justice said it was pleased that the court had ruled to dismiss the case, which it called "extraordinarily flawed". "We have not and will not abandon our efforts to hold President Trump accountable for violating the Nation's original anti-corruption laws".
"All Americans suffer when our chief executive is vulnerable to corrupt foreign influence", they continued.
"The idea that the District of Columbia and Maryland are not harmed by the President's violation of the Constitution is plain error", Maryland Attorney-General Brian Frosh and District of Columbia Attorney-General Karl Racine said in a joint statement.