Often I read about civil court cases that get thrown out because the person(s) filing the case had no direct involvement or were not affected in the case. The judges in these cases often note that the correct parties need to file the suit in order for it to continue.
Trump's case seems to fall on these grounds since the ones defrauded did not file the lawsuit. Why was it not thrown out on these grounds?
Trump's case seems to fall on these grounds since the ones defrauded did not file the lawsuit. Why was it not thrown out on these grounds?
New York State law gives the attorney general the authorization. From Executive (EXC) chapter 18, article 5, section 63, detailing the duties of the attorney general of the State of New York (emphasis by me):
12. Whenever any person shall engage in repeated fraudulent or illegal acts or otherwise demonstrate persistent fraud or illegality in the carrying on, conducting or transaction of business, the attorney general may apply, in the name of the people of the state of New York, to the supreme court of the state of New York, on notice of five days, for an order enjoining the continuance of such business activity or of any fraudulent or illegal acts, directing restitution and damages and, in an appropriate case, cancelling any certificate filed under and by virtue of the provisions of section four hundred forty of the former penal law or section one hundred thirty of the general business law, and the court may award the relief applied for or so much thereof as it may deem proper. The word "fraud" or "fraudulent" as used herein shall include any device, scheme or artifice to defraud and any deception, misrepresentation, concealment, suppression, false pretense, false promise or unconscionable contractual provisions. The term "persistent fraud" or "illegality" as used herein shall include continuance or carrying on of any fraudulent or illegal act or conduct. The term "repeated" as used herein shall include repetition of any separate and distinct fraudulent or illegal act, or conduct which affects more than one person. Notwithstanding any law to the contrary, all monies recovered or obtained under this subdivision by a state agency or state official or employee acting in their official capacity shall be subject to subdivision eleven of section four of the state finance law.
In connection with any such application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. Such authorization shall not abate or terminate by reason of any action or proceeding brought by the attorney general under this section.
The law quoted above gives the attorney general standing to file certain civil fraud suits despite the fact that neither she nor the state of New York was a victim of the fraud. You can think of it as an exception to the normal rules of standing.
