A former Trump campaign staffer lost a court battle over a nondisclosure agreement (NDA) and was required to pay a settlement to the campaign.
She sued in federal court to void the NDA in 2016 so she could carry out a separate suit alleging superiors harassed and defamed her.
Denson sued for $25 million in damages in 2017 over claims including the alleged harassment. The Trump campaign made a $1.5 million arbitration claim, saying she had gone against the NDA.
Federal Judge Jesse Furman ruled in August that the case would be arbitrated, and the arbitrator gave the campaign $49,508 plus interest. This was held up in state court in Manhattan. Furman on Tuesday upheld the state court decision despite a request from Denson to toss it.
Denson had filed a claim to invalidate all NDAs for campaign staffers and volunteers. She argued that they prevent employees from exercising their right to address "workplace misconduct."
She also claimed the agreements are "impermissibly vague" and contrary to federal, state and local public policy. She said in court that anyone who signs the agreement is subject to "grievous financial penalty for the mere act of criticizing" President Trump or members of his family.