“Taxes and Where to Find Them:” The battle of personal jurisdiction between Trump and New York
Ignoring the political aspects of the case, the most interesting piece, I argue, is the fight of jurisdiction on taking New York’s AG to court. Trump’s legal counsel is asking for the trial to be in a federal court in Washington D.C., while the AG is looking for this lawsuit to be heard in a New York federal court. The AG is arguing that the D.C. Court does not have personal jurisdiction [3] over her and that the long-arm statute of D.C. is not valid in this case as the New York AG does not have sufficient minimal contacts with D.C. to enable the federal court there to take jurisdiction over her [4] We are seeing an interesting argument being developed on whether a court in D.C. has the power to adjudicate a case that involves a New York tax return, a New York law, and a New York Attorney General and have it taken away from courts in New York. The reasoning of Trump’s legal team to bring the case to D.C., despite it appearing that all parties involved belong under New York jurisdiction, is that if his tax returns are released it would be to congress in D.C.
Questions?
In Washington D.C. there is a long-arm statute which subjects persons to the jurisdiction of a DC Court if they are conducting any personal business in D.C. [5] The question I ask of you is: do you believe that (ignoring everything else involved) the principle that an AG and a tax official can come under the personal jurisdiction of another court in another state can be based on the idea that records would be sent to D.C. and that meets the requirements of the DC long-arm statute? If so, what is your reasoning? If not, what would be the proper venue for a case such as this?
Another debate I wanted to get into on this would be if just having your tax returns released to congress, regardless of who it is, be enough to constitute harm so as to bring it within the DC long arm statute?
[1] https://www.politico.com/states/new-york/albany/story/2019/07/08/cuomo-signs-law-allowing-new-york-to-hand-over-trumps-taxes-1087835
[2] https://www.cbsnews.com/news/trump-tax-returns-subpoenaed-new-york-prosecutors-subpoena-8-years-of-president-donald-trumps-tax-returns-ap-source/
That is an interesting way to look at the case. To answer the question in the blog regarding whether harm would be caused- the answer, as it often is, is it depends. The harm that could be caused by the release of the tax returns would come depending on what they say. He certainly could come into harm to his reputation if the tax returns show what some believe them to reflect. Is that enough? Is the possibility of theoretical harm to reputation enough?
ReplyDeleteGina...good question, although Trump argues that whether the contents of the returns would or would not damage his reputation is irrelevant. The mere fact of releasing the returns through a subpoena will damage his presidency, he claims because because a sitting president cannot be the subject of a criminal investigation while in office because of Executive privilege.
DeleteI think the jurisdiction is with the New York court. The District of Columbia (DC) does not meet the criteria for a case to be brought to DC according to its own Code. (1) Residency may be a little hazy (where do you live Trump? FL, NY, DC?) but I do not think it is pertinent to the issue. The suit is concerning New York state taxes. The taxes were filed in New York. The state of New York is asking for the taxes, and not DC.
ReplyDelete(1) https://code.dccouncil.us/dc/council/code/sections/13-423.html
What about Trump's argument in court (which you were not privy to) that the New York AG has previously visited DC and has communicated with a congressional committee seeking Trump's tax returns. He argues this is transacting business in DC, which is one of the bases under the DC Long-Arm statute for a DC court to exercise personal jurisdiction over a non-resident. Is that enough?
DeleteThe principle of the AG and a tax official can’t come under personal jurisdiction of another court because it doesn’t meet the DC long arm statue. I think since the taxes were filled in in NY the proper venue would be there. Harm could possibly be done by the tax returns going public however this is speculation which I don’t believe is enough to bring it within the DC long arm statue.
ReplyDeleteWhat about Trump's arguments I referenced in my Reply to Missy's comment? The DC Long Arm statute reaches out and exercises jurisdiction over non residents who do business in DC. Were the activities of the NY AG enough?
DeleteI also would have to argue that NY would have jurisdiction and not D.C., and specifically within a New York Federal Court and not NY state court (due to the nature of the charges being around federal taxes). I don't think Trump's defense; “that if his tax returns are released it would be to congress in D.C.” meets the requirement that it would constitute harm. Because the result of the case (if Trump lost) would be that he has to release his tax returns. That in itself would not constitute harm - the reactions to the contents within his return may or may not damage his credibility and cause harm. But that would be impossible to determine prior to actually seeing what's inside his
ReplyDeletereturn.
I has a very similar thoughts about the process of the jurisdiction on the case, and I believe that is should stay within the NY Federal Court, and I don't believe that release would cause harm, but I think it may discredit his position as a person, but it would not cause harm to him personally. But I think if he has been honest about his tax returns and his business information, then he shouldn't have to worry about the release. However, I am not quite sure the true intention of the need to receive his tax returns? Are we asking for the returns due to practice of previous presidents? Or are we asking for them to cause harm to his character-could that be qualified as "causing harm?" Nevertheless, I believe that all should be processed in the NY Federal Courts.
DeleteVicky and Melissa B..."harm" is a relevant inquiry (as I will explain in class), but was not the main point of the blog post. The author of the post asks whether the DC court may assert personal jurisdiction over the New York AG because she conducted business in DC? Conducting business in DC is one of the grounds under the DC Long Arm statute that allows a DC court to assert jurisdiction (power) over a non-resident. Would sending tax returns to DC (if the DC court ordered them to be produced) constitute doing business in DC? We will discuss this in class.
DeleteNew York Attorney General Letitia James’ general personal jurisdiction is NY, or “home”. From what I can ascertain, her dealings in DC weren’t in courtrooms there, and not sufficient enough to show a relationship in the District. The long-arm statute would not apply.
ReplyDeleteTrump’s counter, that because Congress *may* receive his state return (because of the new law in NY, on hold as this plays out) is presumptive and prospective, and not certain. He was a longtime resident of New York (lifelong, until he became a resident of Florida). AG James represents the State of NY, and so is acting on behalf of it. DC is not a specific personal jurisdiction because these actions (subpoena for release of Trump’s state tax returns) is within the state of NY, not DC.
The new law in NY that directs Trump’s state tax returns be delivered to Congress could change the jurisdiction question (not sure here) if Congress requests or subpoenas the returns … but the reality is, POTUS hasn’t released his tax information at all.
I’m stumped on this second question, (if just having your tax returns released to Congress, regardless of who it is, be enough to constitute harm so as to bring it within the DC long-arm statute) though I agree with Stef and Vicky that it can’t be ascertained at this point if harm would be done because Congress doesn’t have them (talking specific to Trump’s and not “regardless of who it is”), speculation over what is actually contained in the returns, and if they exist at all.
Elizabeth...your first three paragraphs are spot on as we will discuss in class. Speculating about what is or is not in Trump's returns or whether the contents would or would no harm him, is irrelevant if you buy Trump's argument that executive privilege immunizes him from being subpoenaed while he is a sitting president. The mere fact of upholding the subpoena will cause him harm regardless of the contents of the tax returns, according to Trump.
DeleteIn response to the underlying question: Based on the D.C. long-arm statute, I do believe that the New York AG and tax official can come under person jurisdiction of a Washington D.C. federal court. § 13–423 Personal jurisdiction based upon conduct, allows for minimal requirements to be satisfied, in order for Washington D.C. to claim personal jurisdiction. Given that, at the time of this request, Donald Trump’s primary residence was Washington D.C. and his income was earned in Washington D.C., the long-arm statute would enable D.C. to claim personal jurisdiction over this matter.
ReplyDeletePresident or not-Donald Trump has been a public figure for many years. As a public figure-or even an average person-are you obligated to disclose your tax returns to anyone who requests such information? Trump’s net worth and annual earnings are already public knowledge. In addition, how likely is it that Trump is even aware of everything included in his tax returns? If his legal counsel made significant errors, wouldn’t the IRS would be conducting their own investigation?
In response to the “presidential precedent” of releasing personal tax returns-they may have strengthened public trust, but did they tell the full financial story of the president? If Donald Trump’s tax returns were in fact released to congress, what portion of the information would be released to the public? At this point, how would that information influence the public opinion of Trump?
Hypothetically, if the New York AG filed these requests and issued subpoenas prior to Donald Trump getting elected, would the long-arm statute still apply? Is there a firm answer to any of these questions, or is it simply politics?
What if his primary residence was another state and not D.C.? I understand that D.C. has the long-arm statute but what if he was a resident of any other state outside of NY?
DeleteEmily...you are correct, of course, that the motives for seeking Trump's returns are purely political. But, the motives are legally irrelevant for determining jurisdiction of the DC court. And, the fact that Trump has his primary residence in DC and DC is where he makes his money is relevant to determine whether Trump is subject to the jurisdiction of the DC court. But the question is whether the DC court can exercise jurisdiction over a non-resident of DC---the NY AG.
DeleteI would argue that this should stay in the New York Federal court as defined in the reading of personal jurisdiction. The state taxes were filed in NY, the law requesting the state tax returns is in NY, and the AG is under the jurisdiction of NY.
ReplyDeleteCindy...you are making an argument for why New York is the better "venue" for the lawsuit, but your arguments do not address whether the DC court may exercise personal jurisdiction over the NY AG. One possible outcome is for the DC court to conclude it can exercise jurisdiction over the NY AG, but nonetheless dismiss the case because New York is the better venue, i.e. location.
DeleteI think it needs to stay in New York. I think the effort to move to DC is a play to take time and hope for a more friendly court. If there is harm in releasing the return it will cause the same harm released in NY that it would cause if it was released in DC. The fact this this is a a difficult question would add to the time it would take to resolve it and this would keep the return unreleased longer. There was a question of where his personal income is being earned. He filed in NY but is his income now is received in DC. He said he would not take the wage for being the president so he is not earning money there. He said he stepped away from him company to avoid a conflict of interest. his income would have to be limited to investment income and that would most likely be filed in DC. but the new your law requiring the NY state tax return would not impact his return from DC. Even after reading all of the comments I still believe the case should be heard in NY.
ReplyDeleteI wondered the same thing John...is Trump's strategy a play for time? If the case were delayed until after the election it seems that would be advantageous for Trump either way. If he wins re-election, he'd likely have enough political capital to withstand the ensuing attacks. If he loses the election, and the DOJ decided to charge him with something, he could likely plead it out and make it go away.
DeleteJohn, I also believe that the case should stay in New York; and perhaps, President Trump is wanting to the prolong the case, but that is the only reason I could perhaps think of trying to move the case to DC courts was to either prolong the process or perhaps to have it in his favor of the result. Nevertheless, if he can prolong it out then he may not receive any charges depending on the situation of the outcome of the presidential election. I think it is very interesting to consider the intention for wanting the tax returns? What do we want to do with them after they have been released? Prove that he was perhaps not honest in his business, or to question his credibility or reputation as President? But overall, I agree with you that this should be a NY Federal court case.
DeleteThis is a good question - why the focus on his tax returns? I suspect there are questions about whether he/his lawyers filed at all, filed correctly, found loopholes, cheated etc
DeleteI think this case belongs in New York as well. President Trump is a long-time resident of New York, the returns being released are state returns, the income was earned by Trump's business based in New York, with no significant presence in D.C. From my perspective it seems like the claim that D.C's "long-arm" law would apply is invalid. It would be interesting to know the strategy of Trump's lawyers, why they feel it would be more beneficial for the case to be heard in D.C. as opposed to New York.
ReplyDeleteMarlowe...the focus on Trump is misplaced in determining the DC court's ability to exercise power (i.e. jurisdisdiction) over the NY defendants.
DeleteThe question I ask of you is: do you believe that (ignoring everything else involved) the principle that an AG and a tax official can come under the personal jurisdiction of another court in another state can be based on the idea that records would be sent to D.C. and that meets the requirements of the DC long-arm statute? I believe it can, and it can’t.
ReplyDelete--------This is an example of an unprecedented situation and each party presenting their most compelling argument. This is an example of a governmental process such as contract law. There are no consequences for creating a law that may be determined unconstitutional. The only unfavorable outcome for the state of New York is they were unsuccessful to force the release of President Trumps state tax records. Back to the contract law for the federal Government, this is an example of a “Protest”. It does not harm the entity that was not awarded a contract to protest the award. There is no cost or penalty to the entity protesting an award, only the chance to overturn and win the award.
If so, what is your reasoning?
------If I were reasoning with the justification, I would believe the President has a justification to argue the jurisdiction be moved from New York to D.C. Using the example of an out of country or state business that intends to do business globally. When you, as a company, intend to do business out of your jurisdiction, you must accept the responsibility of litigating in the jurisdiction to which you are doing business.
If not, what would be the proper venue for a case such as this?
-------I think there is established bias in the federal system. I think any case brought against a sitting president should have a special federal trial court made up of a conglomeration of federal districts. Almost like the SCOTUS but a level below.
Another debate I wanted to get into on this would be if just having your tax returns released to congress, regardless of who it is, be enough to constitute harm so as to bring it within the DC long arm statute?
--------It should constitute harm to bring it within the D.C. statute. Additionally, the DC court should have the same discretion as the SCOTUS to decide if they believe it is important to the US to hear the case, especially against a sitting President. The DC court should be able to tell the public that disclosure of President Trumps tax returns from 20xx are/are not a matter of national interest or stability to the nation.
I interpreted matters of business and the courts as dependent on where the company is incorporated, that courts in that state have power over a defendant's actions anywhere.
DeleteGabriel...you make the following statement "When you, as a company, intend to do business out of your jurisdiction, you must accept the responsibility of litigating in the jurisdiction to which you are doing business." That is an accurate statement and generally is what the law requires. Indeed, the DC Long Arm statute subjects a non-resident to the jurisdiction of a DC court when the non-resident does business in DC. Did the NY AG conduct business in DC?
DeleteAs I have read over the post, I believe in this case the jurisdiction is in New York, and my reasoning is the fact that we are conducting it under New York State laws, and New York Attorney General. President Trump is aware of the NY state laws, policies, and procedures; and my only thought would be that he is the President that might allow him to move it to D.C. to prolong the process.
ReplyDeleteThe second question, I think the tax returns released to Congress may or may not constitute harm, it is hard to determine if it will cause harm depending on what the Tax Returns show. It depends on how much of the information the public would be released to the public. I think that it could cause the loss of credibility or reputation. Nevertheless, I think at this point we would need to determine if the tax returns would really be in the best interest of the US to received them and to share them with the public? How would that change the opinions of the public?
Nevertheless, in my opinion, I believe that this case should stay within New York Federal Courts, and if President Trump wants it to be reviewed perhaps move it in the proper direction to have it reviewed.
Melissa...a DC court has the power to interpret and enforce a New York law and can issue an order against a NY AG, provided the court has jurisdiction.
DeleteI do not believe that the components of this issue subject the inquiry of the President’s taxes to the D.C. Court. It does not appear as though there is enough of a connection to D.C., both on the side of Trump and of the New York AG, to constitute a change in venue because of the long-arm statute. There is a lot of reaching on both sides when it comes to Trump’s tax returns, but based on the long-arm statute, there is not enough evidence to show that D.C. would be the proper venue. This began in New York and continues to take place in New York as long as the New York AG primarily has dealings in New York and not D.C.
ReplyDeleteTo answer the second question, I agree with what has already been said before as it depends on what may constitute harm in having the tax returns released to Congress. The motives in this matter appear to be mostly political and could potentially cause harm to Trump’s presidency; however, I think that this problem has deeper roots in the divide between political interests. No matter what is decided, there will be passionately held opinions by those who support releasing Trump’s tax returns and those who do not. Overall, I do not believe that these political interests are enough to constitute harm as to bring it within the long arm statute.
Posted on behalf of Jennifer Falkenrath:
ReplyDeleteThe case is only a case because:
1. President Trump is in office in the District of Columbia
2. The law was changed in New York
It took both these actions in order for this to even be a case. In regards to the question “In Washington D.C is there a long-arm statute which subjects persons to the jurisdiction of a DC court if they are conducting any personal business in DC”, I did not see this in the Statute. The closest thing I saw was, §13-423(1) (a) A District of Columbia court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a claim for relief arising from the person’s (a) transacting any business. One could argue that does not include personal business. However, my next argument would be that the subpoena was for the last eight years. It seems if this did fall in the jurisdiction of the District of Columbia, it should only be for the time President Trump could have actually transacted business, per the statue in Washington. Regarding the venue, I think the appropriate venue would be the New York Federal Court. The second question regarding if it would cause harm, in this instance of President Trump, I believe so. It would be endless taxpayer dollars looking bogging down the system. I believe government resources could be better spent.
Jennifer...as we will discuss in class next week, the proper focus on the question of jurisdiction is not on Trump, but on the actions of the New York defendants.
ReplyDelete