What is Donald Trump's disclaimer clause? Ex-president presents document during NYC civil fraud trial, asserts it will exonerate him
NEW YORK CITY, NEW YORK: Former President Donald Trump made a surprising move during his testimony in a Manhattan court on Monday, November 6, pulling a piece of paper from his suit jacket and claiming it would exonerate him in the ongoing $250 million civil fraud case brought against him by New York Attorney General Letitia James.
The 77-year-old former president held up the document, which was a disclaimer clause from a financial statement that James accused him of lying on in her lawsuit.
He asked the judge and a prosecutor if they would like to see it, stating, "Would the judge like to have it?" and later added, "I would love to read this, Your Honor if I could?"
However, Manhattan Supreme Court Justice Arthur Engoron denied his request, stating, "Not at this point." To which Trump responded, "I'm shocked."
Legal battle over financial statements
Trump's defense during his testimony largely revolved around the annual statements of financial condition that James alleged he falsified from 2011 through 2021, inflating his assets for better loan and insurance terms.
Trump argued that the disclaimer clause in these statements meant he wasn't liable for inaccuracies and that they were protected.
He insisted from the witness stand Monday afternoon, "I think that the statements of financial conditions were very good, were actually somewhat conservative, and they were totally protected, and so was I, by the disclaimer clause."
Engoron had previously ruled that the disclaimers "do not insulate defendants from liability" and added that they actually even "put the onus for accuracy squarely on defendants' shoulders."
On Monday, referring to the disclaimer clause, the judge told Trump to "read about my opinion — for the first time, I guess."
The debate over the clause prompted Trump to lash out at the judge and the AG. He reportedly yelled, "He called me a fraud and he didn't know anything about me," while pointing at the judge. He then called James, who sat in the front row, a "political hack."
Arguments against the AG's claims
The former president presented various arguments against the AG's claims, including downplaying the importance of the yearly statements, stating, "They were not really documents that the banks paid much attention to."
He added, "I've been dealing with banks for 50 years. I probably know banks as well as anybody. They look at the deal, they look at the location… they don't want to get involved in financial statements."
He also contended that his net worth was undervalued in the statements, particularly highlighting the value of his property at 40 Wall Street. “That building, you just look at it, and you say it’s worth a lot more than $550 million,” Trump declared, suggesting the prosecutor should “pull up a picture” of the building.
Trump also claimed that he repaid all the bank loans he took out, so no one was actually "harmed" and there was no "victim."
He said, "They were paid in full. There was no victim," before adding, "Everyone is trying to figure out, why are you [the prosecutor] doing this? Nobody understands it, but I understand it… it's called politics."
Still, the law under which the real estate tycoon was sued doesn't require actual harm to be proven if he's found liable for fraud.
Trump has also claimed as a defense that the whole case against him is politically driven, and his lawyers have threatened to make a motion for a mistrial over an alleged bias by the judge.
Upcoming testimonies and case timeline
The 2024 GOP presidential frontrunner testified for roughly three and a half hours during dramatic questioning on Monday.
Ivanka Trump is expected to testify on Wednesday, November 8, before the AG's office rests its case. Trump's side will begin calling witnesses after Ivanka's testimony, including recalling Trump's two eldest sons Don Jr and Eric, as confirmed by Trump's lawyer on Monday.
The case, originally scheduled to run until the Christmas break, is now expected to end around December 15, as Trump's lawyers told the judge on Monday.
After the trial session ended, Trump said the case needed to be dismissed immediately and blasted the judge and the AG for carrying out what he called a "fraud" against him, the New York Post reported.