U.S. judge finds Trump misused court in IRS case, refers lawyers for discipline

A U.S. judge has ruled that President Donald Trump improperly used a $10 billion lawsuit against the IRS to gain personal advantages, preventing a settlement agreement from taking effect. U.S. District Judge Kathleen Williams stated that Trump's personal lawyers and attorneys in his administration had conflicting interests, which is a requirement for civil lawsuits. Williams referred a Trump lawyer, Alejandro Brito, and senior Justice Department officials to state bar authorities to investigate potential violations of legal ethics. In a 56-page decision, the judge concluded that attorneys from both sides misused the legal system to shield actions benefiting Trump and his allies. "This action was never about a party seeking judicial resolution of a legal issue or a factual dispute," Williams wrote. She added that the lawsuit was an attempt to legitimize an agreement that would grant immunity to individuals and entities associated with the president and earmark billions of taxpayer dollars for grievances not defined by law. The settlement, brokered in May between Trump's lawyers and the Justice Department, would have seen Trump drop the suit in exchange for broad tax protections and the creation of a nearly $1.8 billion fund for victims of alleged "government weaponization." Critics argued this fund would benefit Trump's political allies. Williams' order prohibits any party in the case, including Trump, his sons, and his company, from referencing the settlement or its terms in future legal proceedings. This could invalidate the part of the agreement that prevented the IRS from auditing Trump's past tax claims or those of his businesses. Acting Attorney General Todd Blanche had already informed Congress that the plan for the "weaponization fund" would not proceed. The fund was intended to compensate victims of "lawfare" and "weaponization," terms Trump frequently uses to describe legal cases against him and his supporters. A federal judge in Virginia had previously blocked the Trump administration from establishing the fund.

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This action was never about a party seeking judicial resolution of a legal issue or ⁠a factual dispute.