A federal appeals court has ruled that Alina Habba, a former personal lawyer to President Donald Trump, was unlawfully appointed as the acting U.S. Attorney for New Jersey.
The unanimous decision by the 3rd U.S. Circuit Court of Appeals upholds a lower court's finding that the appointment violated federal law.
This marks another setback for the Trump administration in its attempts to place allies in top prosecutorial positions without Senate confirmation.
The panel, consisting of judges appointed by Presidents George W. Bush and Barack Obama, rejected the administration's multistep process to designate Habba.
During oral arguments in October, the judges expressed skepticism about the tactics used to keep her in the role despite district court objections.
The ruling emphasizes the need for clarity and stability in the U.S. Attorney's Office for New Jersey.
It could affect numerous active federal criminal cases, requiring the Justice Department to appoint a new supervisor.
The administration may appeal to the U.S. Supreme Court.
Similar challenges are occurring in other districts, including California, Nevada, and upstate New York, where Trump-picked prosecutors face disqualification.
Last week, a judge in Virginia disqualified Lindsey Halligan and dismissed cases against former FBI Director James Comey and New York Attorney General Letitia James.
Defendants in these cases often seek to have indictments thrown out, arguing lack of authority.
However, some courts have upheld indictments if handled by career prosecutors.
The decision highlights ongoing frustrations with legal barriers to appointing preferred candidates.