A New York Supreme Court judge on Friday denied a request from President Donald Trump and his family members to dismiss a lawsuit against them and the Trump Foundation alleging that the charitable foundation violated state and federal laws for "more than a decade."
In her ruling, Justice Saliann Scarpulla shot down an argument from the Trump family's attorneys that the case should be dismissed because the Supremacy Clause of the U.S. Constitution suggests "a sitting president may not be sued."
The suit, filed by New York State Attorney General Barbara Underwood in Manhattan State Supreme Court, further alleged that Trump had misused the Trump Foundation "for his own personal benefit."
Scarpulla noted that the defendants "have failed to cite a single case in which any court has dismissed a civil action against a sitting president on Supremacy Clause grounds, where, as here, the action is based on the president's unofficial acts."
"I find that I have jurisdiction over Mr. Trump and deny Respondents' motion to dismiss the petition against him on jurisdictional grounds," she wrote, while also denying Trump's request for discovery in the case," Scarpulla wrote.
In a statement, Underwood praised Scarpulla's decision.
"As we detailed in our petition earlier this year, the Trump Foundation functioned as little more than a checkbook to serve Mr. Trump's business and political interests. There are rules that govern private foundations — and we intend to enforce them, no matter who runs the foundation. We welcome Justice Scarpulla's decision, which allows our suit to move forward," the statement read.
Neither the White House nor a lawyer for the Trump Foundation immediately responded to CNBC's requests for comment on Scarpulla's decision.
After Underwood first filed the suit in June, Trump had vented rage on Twitter against "the sleazy New York Democrats."
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This is developing news. Check back for updates.
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