An appellate court has thrown out the $500 million civil fraud penalty against former President Donald Trump in the high-profile case brought by New York Attorney General Letitia James.The New York Appellate Division overturned the penalty, ruling the disgorgement was an excessive fine that violates the Eighth Amendment.The five-member panel all upheld findings that Trump and his company were liable, affirming that James acted within her authority and that injunctive relief to curb Trump Organization practices was appropriate.The ruling leaves liability intact but eliminates the massive financial penalty of $364 million plus interest, which rises to around $500 million.Justice David Friedman issued a dissenting part opinion, writing that James' true aim was political in nature and argued that the entire case should be dismissed.He wrote that James "ultimate goal was not market hygiene but political hygiene, ending with the derailment of President Trumps political career and the destruction of his real estate business."He blasted her use of Section 63(12) of New Yorks Executive Law, which gives the state attorney general broad power to pursue civil fraud claims.Friedman wrote that it was unprecedented and political, giving James "essentially limitless power to prosecute her political enemies."He said Trumps business deals involved sophisticated parties who profited without harming the public and concluded he would "reverse the judgment and dismiss the complaint."Fox News' Tamara Gitt and Kevin Ward contributed to this report.This is a breaking news story and will be updated.