The 11th U.S. Circuit Court of Appeals on Tuesday denied President Trump’s bid to halt sanctions ordered by U.S. District Judge Kathleen Williams in Florida. The sanctions stem from the president’s $10 billion lawsuit against the Internal Revenue Service, which the appeals panel said was pursued in bad faith.

Sanctions remain in force

The appellate court affirmed the July ruling that bars President Trump, his sons Donald Jr. and Eric, and the Trump Organization from citing the settlement that ended the IRS case in any “official” proceeding—meaning judicial, administrative, regulatory, or arbitration settings. The order also keeps in place a referral of one of Trump’s personal attorneys for possible ethics investigations and restricts another lawyer from practicing in the South Florida federal court.

Court’s reasoning

In a unanimous opinion, Judges Adalberto Jordan, Robin Rosenbaum, and Kevin Newsom found that Trump failed to demonstrate a “strong showing” that Judge Williams committed clear error. The panel noted that Trump and his lawyers offered no evidence to explain their litigation conduct or to show that the lawsuit and settlement were not collusive.

The judges also rejected Trump’s claim that the prohibition on referencing the settlement violated the First Amendment. They emphasized that the restriction applies only to “official” contexts, not to general public speech.

Administration’s response

Acting Deputy Attorney General Trent McCotter filed a brief supporting the president’s position, arguing that Judge Williams lacks authority to impose a collateral attack on the settlement. The Justice Department, however, has not provided a comment on the appellate decision.

Background of the IRS dispute

The lawsuit began after a leak of the president’s tax information, prompting Trump to sue the IRS and later negotiate a settlement with the Justice Department. As part of that agreement, the department initially pledged a $1.8 billion fund for victims of alleged government “weaponization,” a provision later withdrawn after Republican pushback. The settlement also included an immunity order from Attorney General Todd Blanche shielding Trump and his affiliates from future audits or claims related to past tax filings.

Judge Williams reopened the case in the summer after former federal judges urged her to examine whether the lawsuit was a pretext to secure a favorable deal. In her scathing opinion, she concluded that Trump attempted to “manipulate the judicial process” and criticized the Justice Department for approving a settlement lacking legal basis.

Next steps

President Trump may ask all active judges on the 11th Circuit to reconsider the panel’s decision or take the matter to the U.S. Supreme Court. The sanctions remain effective while any further appeals are pursued.

Both the president’s legal team and the Justice Department declined to comment on potential next moves.

Original reporting: Texarkana Gazette — read the source article.