Donald Trump could put several hurdles in place to save the auction of his Mar-a-Lago estate in Florida in the wake of a landmark fraud case in New York City, a real estate attorney told Newsweek.
Whether Trump can simply use Florida’s strict home coverage legislation to avoid an auction depends on whether Mar-a-Lago, which includes a personal club, is Trump’s residence, which is far from certain.
Paul Golden is head of constructive trust litigation and spouse of the New York law firm Coffey Modica. He spoke to Newsweek after a New York ruling ordered several Trump corporations to be stripped of their business licenses in New York. This was in reaction to the fraudulent overvaluation of his properties, adding the former president’s Florida resort, Mar-a-Lago in Palm Beach.
Last week, Tristan Snell, a former deputy attorney general for New York, said Trump’s homes would likely be liquidated and auctioned off as a result of an abstract trial in the ongoing fraud case led by New York Attorney General Letitia James.
Golden said Trump could simply use the asset coverage provisions of Florida statutes to save himself a Mar-a-Lago auction.
“If the New York case affected one of the entities that owned Florida’s assets and, in response, Mr. Trump pretended that this constitutional provision is helping him, Mr. Trump would have at least some obstacles,” Golden added.
Under Florida’s homeowners coverage laws, Trump may be protected from any court order. However, he would first have to prove that Mar-a-Lago belongs to what the Florida Constitution calls “a natural person. “
“There’s likely to be restrictive language in [Florida’s] constitution, but some courts haven’t interpreted it that way,” Golden said.
“Another question is whether Mr. Trump would be considered a Florida resident who considered his apartment an asset. One would expect Letitia James to claim that it can’t be considered as an apartment because it’s a members-only place. Club with B
“If only a portion of the estate were considered their ‘residence,’ there would be additional complications,” he added.
Golden said the legal factor could simply be whether the New York court’s ruling can be overturned under Florida law. “It’s a very confusing factor,” he added.
Florida statutes provide some of America’s most powerful protections against garnishments and court orders.
To qualify, it will have to “be owned by a natural person” and be “the apartment of the owner or the owner’s family,” Golden said.
Last week, Snell said Trump’s assets indexed in the case would likely be auctioned off now that his companies’ business licenses were being removed.
“The worst end result that may have come out of this case has already been pronounced, which is the cancellation of companies’ licenses,” Snell told MSNBC. “The houses will probably be liquidated. Most likely, the houses will be “It will be sold at auction. That’s probably what’s going to happen. We’re not sure, but that’s probably where it takes us. So [Trump] is already in trouble. “
Snell said it was vital that Trump had already lost the abstract trial, despite his claims of innocence. The former president has continually denied any wrongdoing.
Judge Arthur Engoron gives Trump’s lawyers until Oct. 26 to submit a list of names of potential administrators. This officer will oversee the dissolution of companies’ business licenses.
To save himself legal maneuvering to thwart his decision, Engoron told Trump’s legal team that they will have to give advance notice of any application for a new business license in any jurisdiction. They will also have to report any attempt to create new entities to own or acquire the assets of a company that is dissolved pursuant to the judgment.
Update 10/11/23 at 10:25 a. m. ET: This article has been updated to explain that Mar-a-Lago is in Palm Beach, Florida.
Sean O’Driscoll is a court reporter and criminologist for Newsweek based in Ireland. Its purpose is to inform about U. S. legislation. He has covered human rights and extremism extensively. Sean joined Newsweek in 2023 and in the past has worked for The Guardian, The New York Times, BBC, Vice, and others in the Middle East. He specialized in human rights issues in the Persian Gulf and conducted a three-month investigation into labor rights abuses for the New York Times. In the past it was founded in New York City for 10 years. He is a graduate of Dublin City University and is a qualified lawyer in New York and an Irish notary.
You can reach Sean by emailing s. odriscoll@newsweek. com. Languages: English and French.