A federal judge has found that President Donald Trump's $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns was filed for an “improper purpose.”
Judge Kathleen Williams found that President Trump effectively controlled the IRS and treasury as head of the Executive Branch, which means the parties were not "truly adverse" and that there was "never a case or controversy."
According to the judge, the case was used to obtain "judicial legitimacy" for a settlement that otherwise lacked a legal basis and the plaintiffs acted in bad faith.
“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law,” the judge wrote.
There have also been sanctions imposed on Trump's attorneys. Trump's Florida lawyer, Alejandro Brito, was referred to the Florida Bar. Daniel Epstein is barred from pro hac vice admission in the Southern District of Florida for one year.
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The parties are also prohibited from citing, offering, or relying on the purported settlement agreement as evidence that a settlement was reached in this case.
“In abdicating its responsibility to zealously defend the interests of the United States, the Government entered into a ‘settlement’ that deviated from its litigation posture in similar actions, disregarded DOJ policies, and accomplished objectives beyond those authorized, as well as those specifically prohibited, by law,” Williams wrote.
The U.S. government later dropped tax claims against President Trump as part of a settlement deal meant to resolve the lawsuit.
According to a one-page document posted to the Justice Department's website, the U.S. was “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues.
