Sullivan & Cromwell has reversed a stated red line by joining Donald Trump's appeal in one of E. Jean Carroll's defamation cases, deepening a rift among partners at the nearly 150-year-old firm. Co-chairman Robert Giuffra had assured colleagues last year that the firm would handle Trump's appeals of his felony falsifying-records conviction and a civil-fraud judgment but would not touch the Carroll litigation, according to people familiar with the matter.

The reversal carries reputational weight. A federal jury awarded Carroll $5 million in 2023 after finding Trump liable for sexual abuse, and a separate jury ordered $83 million in damages the following year for defamatory statements Trump made while in office. Sullivan & Cromwell's decision to engage on the appeal signals a willingness to absorb partner dissent and client-scrutiny risk in exchange for proximity to the president.

Internal opposition reflects broader market pressure on elite firms navigating politically charged representations. Partners who opposed the Carroll work argue it undermines the firm's credibility with corporate clients and recruits. The firm's leadership appears to have calculated that the strategic value of the Trump relationship outweighs the attrition risk.

For legal-market observers, the episode tests whether a top-tier firm can compartmentalize high-profile political work without eroding its core commercial franchise. The answer will shape how peers assess similar engagements ahead of the 2026 midterms.