Blumenthal v. Trump

373 F. Supp. 3d 191
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 30, 2019
DocketCivil Action No. 17-1154 (EGS)
StatusPublished
Cited by6 cases

This text of 373 F. Supp. 3d 191 (Blumenthal v. Trump) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blumenthal v. Trump, 373 F. Supp. 3d 191 (D.C. Cir. 2019).

Opinion

Emmet G. Sullivan, United States District Judge

I. Introduction

In its previous Opinion, the Court held that plaintiffs, approximately 201 Members of the 535 Members of the United States Senate and House of Representatives, had standing to sue defendant Donald J. Trump in his official capacity as President of the United States ("the President") for alleged violations of the Foreign Emoluments Clause ("the Clause"). See *194Blumenthal v. Trump , 335 F.Supp.3d 45, 72 (D.D.C. 2018) (" Blumenthal I "). The President has moved to dismiss the Amended Complaint for failure to state a claim because, inter alia , he contends that "Emolument" should be narrowly construed to mean "profit arising from an official's services rendered pursuant to an office or employ." Def.'s Mot. to Dismiss ("Mot. to Dismiss"), ECF No. 15-1 at 38.1 The President's definition, however, disregards the ordinary meaning of the term as set forth in the vast majority of Founding-era dictionaries; is inconsistent with the text, structure, historical interpretation, adoption, and purpose of the Clause; and is contrary to Executive Branch practice over the course of many years.

Pursuant to the Clause, certain federal officials, including the President, shall not "accept" an "Emolument" from "any King, Prince, or foreign State" without "the Consent of the Congress." U.S Const. art. I, § 9, cl. 8. In Count I, plaintiffs seek declaratory relief pursuant to 28 U.S.C. § 2201 in the form of a declaratory judgment stating that the President is violating the Clause when he accepts Emoluments from foreign states without first seeking the consent of Congress. Am. Compl., ECF No. 14 ¶¶ 85-86. In Count II, plaintiffs seek injunctive relief pursuant to the Court's inherent authority to grant equitable relief and pursuant to 28 U.S.C. § 1331 in the form of a Court order enjoining the President from accepting "any present, Emolument, Office, or Title, of any kind whatever" from a foreign state without obtaining "the Consent of the Congress." Id. ¶ 92.

In holding that plaintiffs had standing to sue the President in Blumenthal I , the Court deferred ruling on the remaining arguments in the President's motion to dismiss: (1) failure to state a claim upon which relief can be granted; (2) lack of a cause of action to seek the relief requested; and (3) the injunctive relief sought is unconstitutional. Mot. to Dismiss, ECF No. 15-1 at 17-18.

Upon careful consideration of the President's motion to dismiss, the opposition and reply thereto, the relevant arguments of amici ,2 and for the reasons explained below, the Court finds that: (1) plaintiffs have stated a claim against the President for allegedly violating the Foreign Emoluments Clause; (2) plaintiffs have a cause of action to seek injunctive relief against the President; and (3) the injunctive relief sought is constitutional. The Court therefore DENIES the portions of the motion to dismiss that were deferred in the Court's prior Order.

II. Factual Background

Plaintiffs allege that the President "has a financial interest in vast business holdings around the world that engage in dealings with foreign governments and receive benefits from those governments." Am. Compl., ECF No. 14 ¶ 2. In particular, the President owns "more than 500 separate entities-hotels, golf courses, media properties, books, management companies, residential and commercial buildings, ... airplanes and a profusion of shell companies set up to capitalize on licensing deals." Id. ¶ 34 (internal quotation mark omitted). Since being elected President, he has "not divested or otherwise given up his ownership interest in his worldwide business holdings." Id. ¶ 36.

*195As a result of his financial interests, plaintiffs allege the President has accepted, and will accept in the future, Emoluments from foreign states. Id. ¶ 37. Indeed, the President has acknowledged "that his businesses receive funds and make a profit from payments by foreign governments, and that they will continue to do so while he is President." Id. Public reporting has also confirmed this to be the case. Id.

Plaintiffs allege that "[t]hese various benefits from foreign governments-payments, loans, permits, exemptions, policy changes, and intellectual property rights-constitute prohibited 'Emolument[s]' and/or 'present[s]' under the Foreign Emoluments Clause ...." Id. ¶ 38 (citation omitted). Specifically, the President has allegedly accepted valuable intellectual property rights from the Chinese government without seeking and obtaining the consent of Congress. Id. ¶¶ 44-50. The President has also allegedly accepted payments for hotel rooms and events from foreign diplomats and from foreign lobbying groups paid for by foreign governments without seeking and obtaining the consent of Congress. Id. ¶¶ 52-57.

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Bluebook (online)
373 F. Supp. 3d 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blumenthal-v-trump-cadc-2019.