Maryland, DC Sue Trump Over Hotel Business

The attorneys general for Maryland and D.C. have filed a lawsuit against President Trump in federal court arguing that his failure to completely divest from his hotel business is in violation of the U.S. Constitution.

"The case involves unprecedented constitutional violations by the President that have injured and threaten to cause continuing injury to the District of Columbia and the State of Maryland and their respective residents, including direct injury to the plaintiffs' interests in properties located in the District, in Prince George's County, Maryland and in Montgomery County, Maryland," the suit states.

Maryland Attorney General Brian Frosh and D.C. Attorney General Karl Racine said they expect the case to eventually reach the Supreme Court, according to the Washington Examiner.

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Although the attorneys general aren't bringing a new argument to the table, they believe they have the best shot at winning a court battle against the President as they represent the states.

The suit claims that Trump's hotels, including the oft-criticized Trump International Hotel in D.C., create unfair competition for local businesses, including properties that the nearby states have a financial stake in. A D.C. wine bar filed a similar lawsuit against Trump in March.

"We allege that in respect to the D.C. Convention Center business has been lost because foreign governments have directed as much of their business as possible to the Trump Hotel in D.C.," Racine said on a conference call organized by the liberal legal group American Constitution Society via the Examiner.

"The Trump hotel competes with facilities in which Maryland has a direct financial interest," said Frosh on Wednesday's call.

The attorneys general allege Trump is violating the Emoluments Clause that prevents federal officials from accepting gifts, emoluments or economic benefits from foreign governments. The challenge will be having the courts define the clause as it's never been litigated before.

READ MORE: 'Pay Bribes Here' Projected onto Trump's DC Hotel

While Trump has stepped away from his businesses since taking office, NPR reported how he remains the sole beneficiary of the trust currently being run by his sons.

Research conducted by the New York Times last year revealed that Trump had an interest in more than 30 properties around the U.S. Although he doesn't own the Trump International Hotel in D.C., he has a ground lease for the property—meaning he can develop and rent out the space even though it sits on land owned by someone else.

Business Insider reported in November that Trump's D.C. hotel could potentially present a conflict of interest even though he doesn't own the property. Trump's lease with the General Services Administration (GSA) has been a hot-button issue dating back to last year when he was elected, but it ruled in March that the lease was in full compliance despite including a clause that prohibits an elected official from benefiting from the property.

"President Trump's myriad international and domestic business entanglements make him vulnerable to corrupt influence and deprive the American people of trust in their chief executive's undivided loyalty," the suit claims.

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