U.S. President Donald Trump speaks to the media on the South Lawn of the White House on September 26, 2026 in Washington, DC.
Aaron Schwartz | Getty Images
A federal appeals court panel on Tuesday rejected a bid to pause sanctions imposed on two attorneys for President Donald Trump over their handling of his $10 billion lawsuit against the Internal Revenue Service.
The three-judge panel in the 11th U.S. Circuit Court of Appeals found that the attorneys, Alejandro Brito and Daniel Epstein, failed to show they were likely to succeed in arguing that Miami U.S. District Court Judge Kathleen Williams lacked sufficient basis when she found the lawyers acted in bad faith in the civil suit.
The panel also said the appeal was premature. The panel noted that Williams has not made a final decision on whether to grant a request by a group of former judges that she reopen the case — which was controversially settled out of court in May — and also has not decided a question about attorneys’ fees.
Brito and Epstein were sanctioned after Williams found that the parties in the lawsuit were not adverse to one another, as Trump controlled the IRS due to his status as head of the executive branch of government.
Williams in July referred Brito to the Florida Bar to determine if he should be disciplined in light of her scathing findings after the case was settled.
Williams also ordered that all future applications by Epstein to be admitted pro hac vice in the Southern District of Florida be denied for one year. Lawyers not admitted to practice in a certain federal judicial district can appear in a case there if they are admitted through a “pro hac vice” application.
The appeals panel’s ruling denying a delay in the sanctions was unanimous.
One of the judges on the panel, Kevin Newsom, was appointed by Trump. The other two judges, Robin Rosenbaum and Adalberto Jordan, were appointed by President Barack Obama.
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Trump has sued the IRS over the leak of his tax records by an agency contractor. The settlement briefly led the Justice Department to create a $1.8 billion “lawfare” fund that was quickly abandoned after outrage at the idea it could be used to compensate defendants in Jan. 6, 2021, Capitol riot cases who had assaulted police officers and other defendants.
The settlement also protected Trump, his family members, the Trump Organization and related trusts and affiliates from potential IRS enforcement actions related to federal tax returns filed.
Williams found that the plaintiffs, which included Trump’s eldest sons, Donald Trump Jr. and Eric Trump, had “acted in bad faith and for the improper purpose” by filing a lawsuit “solely to provide cover for a collusive settlement.”
In addition to sanctioning Brito and Epstein, Williams also ordered a copy of her order to be sent to the New York State Bar Association, of which acting Attorney General Todd Blanche is a member. Blanche, who is Trump’s former criminal defense lawyer, announced the creation of the DOJ’s now-aborted compensation fund after the suit was settled.
A spokesman for Trump’s legal team, in a statement about Tuesday’s ruling by the appeals panel, said, “The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people.”
“President Trump continues to hold those who wrong America and Americans accountable,” the spokesman said.






