“They point to the fact that the settlement in question includes a ‘three-paragraph addendum … [that] purports to ‘forever bar and preclude’ the United States from pursuing claims that could have been [otherwise] asserted [against] Plaintiffs,’ and highlight the fact that Defendants did not ‘even try to defend against Plaintiffs’ claims’ despite their active opposition to nearly identical claims in other litigation,” Judge Williams noted.
A Florida-based court agreed to reopen President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service after a bipartisan group of 35 former federal judges raised concerns about a proposed “anti-weaponization” fund.
According to The Hill, the U.S. Department of Justice and Trump agreed to voluntarily dismiss the lawsuit against the Internal Revenue Service in exchange for the creation of a $1.776 billion fund. The fund would provide compensation for persons who feel that they were subject to unfair political persecution by the Biden administration. This broad definition would likely include persons convicted for involvement in the January 6, 2021, riots at the Capitol.
On Friday, Florida-based U.S. District Judge Kathleen Williams agreed to reopen the case for review.
“The non-party movants explain that although there is no settlement of record in this matter, public documents and announcements indicate that the dismissal of this case was premised on a purported settlement between the Parties,” Williams wrote. “In turn, movants submit that the settlement ‘is a product of collusion and is itself a fraud on the Court.’”
By reopening the case, Wiliams will, in effect, return it to litigation.
The Hill notes that, outside the creation of an anti-weaponization fund, the proposed settlement between Trump and the Internal Revenue Service was loaded with a round of other contentious provisions. Acting U.S. Attorney General Todd Blanche, for instance, added an addendum to the agreement that would “forever bar and preclude” the IRS from reviewing any of Trump’s prior tax returns. Previous audits have found the president could owe more than $100 million in unpaid taxes.
The 35 judges behind the initial push to reopen the case, says The Hill, argued that the original case violated a conditional requirement for parties to be truly adverse in court lawsuits. Critics of the Trump administration have previously pointed out that, as sitting president, Trump has expansive executive authority over the same agencies that he’s suing.
“The non-party movants advance grievous allegations that Plaintiffs voluntarily dismissed this litigation solely to avoid judicial scrutiny of a lawsuit that ‘was collusive from the start’ and was only filed to provide the imprimatur of legality for an unlawful settlement,” Williams wrote.
“They point to the fact that the settlement in question includes a ‘three-paragraph addendum … [that] purports to ‘forever bar and preclude’ the United States from pursuing claims that could have been [otherwise] asserted [against] Plaintiffs,’ and highlight the fact that Defendants did not ‘even try to defend against Plaintiffs’ claims’ despite their active opposition to nearly identical claims in other litigation,” Williams noted.
Williams’ ruling orders both Trump and the Justice Department to file new briefs explaining the “charges of collusion and whether the Parties are truly adverse,” as well as “whether the case should be reopened because the Court was the ‘victim of a fraud.’”
The Democracy Defenders Fund, which represented the former judges in their petition, has since expressed its gratitude for Williams’ ruling.
“The judges and their counsel greatly appreciate the seriousness with which the court is addressing these grievous allegations,” said Norman Eisen of the Democracy Defenders Fund. “We stand ready to work with the court as it investigates this matter.”
Sources
Former Judges Urge Inquiry Into Deal Trump Struck With I.R.S.
Judge agrees to reopen Trump’s $10B IRS case for further scrutiny
Judge Reopens Trump’s I.R.S. Suit and Questions His ‘Weaponization’ Fund
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