Donald Trump
Trump is not barred from continuing his battle to unseat President Joe Biden in November -- even in the unlikely event he goes to prison. AFP

Donald Trump can sue his estranged niece, Mary L. Trump, over her role as a "source" for the New York Times when it was conducting its investigation into the former president's finances, according to a New York State appeals court.

The Appellate Division of the State Supreme Court ruled that Trump's niece must be held liable for breaching confidentiality agreement at the time that she provided Times journalists with financial documents that they needed when they were investigating the former president.

The documents that were provided by Trump's niece became the basis of a series of New York Times articles, which laid down the alleged history of tax avoidance and fraud of Trump. The series even received a Pulitzer Prize in 2019.

New York Times reported that in 2021, Trump sued the publication over the series, alleging that The Times improperly induced his niece in order for her to provide the documents.

Just last year, the case was dismissed by a New York judge and even ordered Trump to pay the legal fees incurred by The Times. Trump claimed that his niece broke the confidentiality agreement, which was a part of the settlement of the will of the former president's father, Fred C. Trump.

Mary Trump, in a 2022 memoir, revealed her role in The Times investigation, but said that her actions were protected by the First Amendment.

A five-judge panel stated that it was unclear if the disclosures of Mary Trump were subject to confidentiality. It also stated that the former president may deserve minimal damages, but not the $100 million that he was asking from the court.

"At a minimum, nominal damages may still be available on the breach of contract claim even in the absence of actual damages," the court said in Reuters report.

Mary Trump's lawyers said that the lawsuit filed by the former president violated a state law that bars frivolous cases meant to silence critics. Her lawyer, Anne Champion, said that she has made valuable contributions to the knowledge of the public about the former president "with her unique perspective as a family member." She also added that they are "confident she will be vindicated."

On the other hand, Alina Habba, one of the former president's lawyers, said that he was looking forward to holding Mary Trump accountable for the breach of contract.

The decision upheld the ruling of Justice Robert Reed, of the State Supreme Court in June 2023.