Yesterday, CREW again amended its complaint alleging that President Trump has violated the Domestic and Foreign Emoluments Clauses of the U.S. Constitution. Notably, CREW added another plaintiff: Eric Goode, the owner of several famous hotels, restaurants, bars and event spaces in New York.  

Several weeks ago, following CREW's first amendment to its complaint, Take Care published analyses by Mike Dorf (here), Leah Litman (here), Jon Taylor (here), and Matthew Stephenson (here) of Article III standing based on "competitor injury." That analysis may be helpful as an initial guide to at least some of the questions also presented by Eric Goode's involvement in the litigation.

Here are relevant allegations from the Second Amended Complaint:

18.  Plaintiff Eric Goode resides in New York, New York. Mr. Goode is the owner of several celebrated hotels, restaurants, bars, and event spaces in New York. These include the Maritime Hotel located in Chelsea; the Bowery Hotel and Ludlow Hotel, both in the Lower East Side; and the Jane Hotel in the Meatpacking District. Among the restaurants that Mr. Goode owns—several of which are located in hotels—are the Park, Waverly Inn, and Gemma, the last of which is located in the Bowery Hotel. Mr. Goode’s hotels and restaurants have attracted multiple foreign government clients and events, and have also hosted U.S. government officials and state officials traveling on official business and thus paying with government funds. 

19.  Mr. Goode brings this action to stop and prevent the violations of the Emoluments Clauses that Defendant has committed and will commit. Mr. Goode’s hotels and restaurants compete with hotels and restaurants owned by Defendant, and with restaurants located in hotels and other properties owned by Defendant, or in which Defendant has a financial interest. As a direct result of Defendant’s refusal to avoid violations of the Emoluments Clauses, Mr. Goode will be injured without relief from this Court.

. . . 

G. Eric Goode’s Injuries 

228.  Plaintiff Eric Goode is an individual resident of New York, New York. Mr. Goode is the owner of several celebrated hotels, restaurants, bars, and event spaces in New York. These include the Maritime Hotel located in Chelsea; the Bowery Hotel and Ludlow Hotel, both in the Lower East Side; and the Jane Hotel in the Meatpacking District. Among the restaurants that Mr. Goode owns are the Park, Waverly Inn, and Gemma, the last of which is located in the Bowery Hotel. 

229.  Travel & Leisure has called Mr. Goode’s hotels “downtown landmarks known for their stylish accommodations and nightlife” and his restaurants “buzzy.”68 The Bowery Hotel has been referred to as an “essential New York hotel” and “neighborhood gamechanger,” which offers “the quintessential New York experience.” Its restaurant, Gemma, has been described as one of New York City’s best hotel restaurants with “essential al fresco dining.”

230.  Diners at Mr. Goode’s restaurants and guests at his hotels frequently include diplomats and other officials of foreign states, the United States, and various state governments traveling on official business, and thus paying with their government’s funds. 

231.  Mr. Goode’s hotels and restaurants compete with hotels and restaurants owned by Defendant, and with restaurants located in hotels and other properties owned by Defendant, or in which Defendant has a financial interest, by providing the same or similar service in the same marketplace.

232.  Foreign states have hosted and will host events at hotels and restaurants in which Defendant has financial interests, instead of at competing hotels and restaurants. 

233.  Defendant has benefitted and will benefit in several respects from payments made from foreign states and from the United States and state and local governments to hotels and restaurants owned by Defendant. 

234.  As a hotel and restaurant owner, Mr. Goode will be harmed due to loss of revenue by Defendant’s ongoing financial interest in businesses which receive payments from foreign states, the United States, or state or local government.

Disclaimer: I am not a neutral party.  I've worked closely with many of the lawyers bringing the CREW case and I've co-authored articles about the case with several them.

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