Since were talking about federal court, what federal law did Trump University break, and what clause in Congresss constitutional Article I, Section 8-limited powers is this law reasonably based on?
If Trump University possibly breached a contract with students, then please note the following.
A previous generation of state sovereignty-respecting justices had clarified that Congresss Commerce Clause powers (1.8.3) do not extend to contracts, in this case regardless if Trump University had students outside NY.
4. The issuing of a policy of insurance is not a transaction of commerce [emphasis added] within the meaning of the latter of the two clauses, even though the parties be domiciled in different States, but is a simple contract of indemnity against loss. Paul v. Virginia, 1869. (The corrupt feds have no Commerce Clause (1.8.3) power to regulate contracts.)
Corrections, insights welcome.
That decision was overruled in United States v. South-Eastern Underwriters Association (1944), during the Supreme Court's New Deal Revolution.
The federal court is hearing this case under diversity jurisdiction, which requires the case be about more than $75,000 and that no plaintiff is from the same State as any defendant.