Appeals court deals setback to Trump in fraud suit

A nonprofit group that was critical of Trump supported the suit. However, ACN was not named as a defendant in the suit. The lawsuit did however seek documents from ACN by subpoena.The 2nd Circuit ruled that third parties may sometimes use arbitration. This is usually seen as more friendly to large businesses than the courts. However, Trump's role in this case did not require that the arbitration clause be applied to him, his children, or his company.The plaintiffs' theory of fraud centers on the fact that defendants misled plaintiffs into believing that ACN and the defendants were independent. ACN was promoted and endorsed by defendants based upon an objective outside assessment. Judge Robert Sack wrote this opinion along with Judges Raymond Lohier, Denny Chin. This understanding is consistent with the fact that there is no evidence suggesting that plaintiffs treated defendants as though they were parties to the agreement.In fact, those who signed contracts to market for ACN stated that they only agreed with ACN and not its service providers or any other party with which ACN transacts business.President Bill Clinton appointed Sack. President Barack Obama appointed Lohier and Chin.ACN's attempt to use the arbitration clause in order to refuse to hand over documents was also rejected by the appeals court panel.ACN's attorney and representatives for Trump Organization didn't immediately respond to messages requesting comment. They could request the 2nd Circuit's full bench to hear the case, or ask for review by the Supreme Court.Roberta Kaplan was the lead counsel for plaintiffs and praised the ruling of the appeals courts.Kaplan stated that they are thrilled to resume discovery in the important case regarding a decades-old consumer fraud against hardworking Americans, perpetrated by Donald Trump (and three of his adult kids), in a statement. We are awaiting subpoenas to ACN, MGM and we look forward to the Celebrity Apprentice tapes and documents that respond to those subpoenas. We will also press the Trumps for completion of their document production in order to begin depositions as soon possible.