11th Circuit Rejects Request to Halt Sanctions on Trump Lawyers in IRS Case

A three-judge panel of the Atlanta-based 11th U.S. Circuit Court of Appeals on Tuesday denied a request by Donald Trump’s lawyers and the Justice Department to suspend sanctions imposed by U.S. District Judge Kathleen Williams. The sanctions stem from a settlement that concluded a $10 billion lawsuit Trump filed against the Internal Revenue Service.

Judge Williams had ruled that the settlement was improperly collusive because Trump, while president, oversaw the agencies he sued. The order referred one of Trump’s personal attorneys, Alejandro Brito, to Florida disciplinary authorities and prohibited Trump, his adult sons and his company from describing the agreement as a court settlement or citing its terms in future proceedings.

In their appeal, Trump’s counsel and the Justice Department argued that the restrictions violated First Amendment free-speech rights. The appellate panel found that the referral of Brito was not a final order subject to appeal and that the limitation on referencing the settlement was narrowly tailored, not infringing on constitutional protections.

"The president's lawsuit against the IRS was an appropriate means to hold those who wrong America and Americans accountable," a spokesperson for Trump’s legal team said.

A Justice Department spokesperson did not immediately respond to a request for comment. The case originated after Trump sued the IRS alleging inadequate protection of his tax records during his first term. In May, the parties reached an agreement to dismiss the lawsuit in exchange for immunity on past tax claims and a proposed $1.8 billion fund for allies, a provision later abandoned after bipartisan opposition.

The appellate court noted that neither Trump’s lawyers nor the Justice Department provided evidence to demonstrate that their litigation conduct was non-collusive.