(CNN) A trio of Republican-appointed federal appeals court judges in Virginia indicated in oral arguments Tuesday that they are skeptical of a lawsuit filed by the District of Columbia and Maryland over President Donald Trump's ongoing interest in his family company, the Trump Organization.

One of the judges asked whether the suit was politically motivated -- a sign of the deep partisan divisions over questions concerning the President's business arrangements.

Both attorneys general are Democrats. They claim Trump is violating the constitutional ban on government officials accepting gifts or favors from foreign or domestic government entities because he maintains a stake in the Trump International Hotel in Washington.

Attorneys for the Justice Department argued in Tuesday's hearing that the President can't be sued while in office.

DC Attorney General Karl Racine told CNN after the hearing that he plans to appeal to a full court panel if Tuesday's smaller panel of three judges rules in favor of the government, and would be willing to take his case to the Supreme Court.

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