Donald Trump loses bid to toss out corruption lawsuit brought by Maryland, DC

Fredreka Schouten | USA TODAY

WASHINGTON — President Trump lost a bid on Wednesday to toss out a lawsuit that claims his business with foreign and state governments violates anti-corruption provisions of the Constitution.

U.S. District Judge Peter Messitte ruled that the governments of Maryland and Washington, D.C., have legal standing to pursue their case, which argues that Trump's continued ownership of the Trump International Hotel in the nation's capital gives him an unfair advantage over other area businesses.

Messitte's ruling keeps alive, for now, a case that centers on whether Trump's decision to maintain ownership of his real-estate and branding empire violates the little-tested emoluments provisions of the Constitution, barring top officials from accepting payments from foreign governments or other government entities.

Although the case still faces other hurdles, Messitte's decision marks the latest legal challenge confronting Trump. The president is contending with an investigation by special counsel Robert Mueller into Russian interference in the 2016 presidential election and a lawsuit brought by a former porn star Stormy Daniels who says she had a sexual encounter with Trump in 2006.

Earlier this month, a New York court ruled that former Apprentice contestant Summer Zervos, who accused Trump of groping her, would be allowed to move forward with a defamation lawsuit against him.

Justice Department lawyers, who are representing Trump, have argued the case is a politically motivated "fishing expedition," aimed at rooting through Trump's finances. They also have argued that Maryland and D.C.did not have standing because they had not demonstrated lost tax revenues because of Trump's downtown hotel.

In the opinion filed Wednesday, Messitte said the two governments are more than "nominal parties" when tens of thousands of people in Washington, D.C. and Maryland work in the hospitality industry.

"It can hardly be gainsaid that a large number of Maryland and District of Columbia residents are being affected and will continue to be affected when foreign and state government choose to stay, hosts events or dine at the (Trump) hotel rather than at comparable Maryland or District of Columbia establishments, in whole or in substantial part simply because of the president's association with it," the judge wrote.

The case is one of several challenging Trump's unorthodox decision to retain ownership of his businesses while serving in the White House. Although he transferred management responsibilities to his adult sons, Trump has the right to draw money from his companies at any time.

The Trump Organization has acknowledged accepting payments from foreign governments for accommodations and meals at the Trump Hotel and says it has donated those profits to the U.S. Treasury.

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