Avenatti seems to lose Trump suit, but declares victory

Having exhausted the legal arguments to justify why U.S. District Judge James Otero should not dismiss porn actress Stormy Daniels' breach of contract claim against President Donald J. Trump, her attorney Michael Avenatti said Tuesday he was at a loss.

Otero strongly indicated he would toss the case, brought over a nondisclosure agreement Daniels, whose real name is Stephanie Clifford, and Trump allegedly entered into ahead of the 2016 presidential election. Trump and his estranged ex-attorney Michael Cohen, also a defendant in the case, initially fought in favor of the agreement's enforceability while Daniels argued it was unconscionable and should be ruled void by the court.

But Trump and Cohen changed course entirely in September, abandoning claims that the contract was enforceable and offering Daniels their blessing to speak freely. In exchange, they asked Otero to dismiss the case, claiming their changed position mooted the central legal issue. Clifford v. Trump, 18-cv-02217 (C.D. Cal., filed March 8, 2018).

In a motion to dismiss hearing Tuesday, Otero plainly asked Avenatti what case law he believed offered precedent for the lawsuit's continued survival. And while Avenatti did eventually offer precedent after repeated prodding, Otero indicated he didn't find it convincing.

Otero said he understood Avenatti might be motivated by "personal reasons" to preserve Daniels' claim, which didn't seem to sit well with Avenatti.

"Personal reasons?" Avenatti repeated.

When Otero clarified the comment was in reference to Avenatti's preference that the case not be dismissed, Avenatti said his client wasn't here for personal reasons.

"We're here for justice," Avenatti said, "which we haven't seen much of it lately."

Avenatti appeared increasingly agitated as points in favor of the case's dismissal accrued, and as the hearing drew to a close, Avenatti made one last impassioned plea in favor of preserving the suit. He cited violations of campaign finance law, Cohen's newly-acquired status as a convicted felon, and a litany of other exceptional circumstances involved in the matter he felt should justify allowing the case to continue. Otero didn't seem engaged, and Trump's lawyer, Charles Harder of LLP, smiled broadly while looking directly at Avenatti.

That may be because if Otero rules as he's indicated, Trump will have walked away from Tuesday's hearing as the only party unscathed. Otero indicated Daniels wouldn't have to return $130,000 allegedly given to her by Cohen in connection with the nondisclosure agreement, much to the chagrin of Cohen's lawyer, Brent H. Blakely of Blakely Law Group, who argued the contract had been previously rescinded.

In a media conference held after the meeting, Avenatti claimed the hearing was actually a resounding plaintiff's victory. The court, he said, had agreed the terms of the agreement were unenforceable.

"[The defendant's lawyers] admitted that my client was right all along, which is shocking and gratifying," Avenatti said.

Asked if that meant Daniels would soon come forward with new information previously withheld due to the agreement, Avenatti said that would be up to his client.