A New York Appeals Court narrowed state Attorney General Letitia James’ civil lawsuit against the Trump family on Tuesday, dismissing Ivanka Trump as a defendant and deciding that the statute of limitations would prevent her from suing for alleged fraud.

The Appellate Division in Manhattan decided that James can no longer sue for alleged transactions that occurred before July 13, 2014 or Feb. 6, 2016.

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Ivanka Donald Trump

Ivanka Trump, right, and her father, then-President Trump, left.  (Ivanka Trump)

The court also said claims against former President Trump’s eldest daughter Ivanka Trump should be dismissed.

"The Appellate Division decision today represents the first step towards ending a case that should have never been filed," a Trump spokesperson told Fox News Digital on Tuesday. "The correct application of the law will now limit appropriately the previously unlimited reach of the Attorney General." 

The Trump spokesperson added: "Going forward, we remain confident that once all the real facts are known, there will be no doubt President Trump has built an extraordinarily successful business empire and has simple done nothing other than generate tremendous profits for those financial institutions involved in the transactions at issue in the litigation."

NY AG James speaking to crowd.

New York Attorney General Letitia James spoke out against Target's decision to reign in its Pride Month merchandising following consumer complaints.  ((Photo by Michael M. Santiago/Getty Images))

James, a Democrat, brought a lawsuit against Trump in September alleging he and his company misled banks and others about the value of his assets.

Donald Trump holding his fist up while facing the camera.

Donald Trump departs Trump Tower Thursday, April 13, 2023. The former president will appear before New York State Attorney General Letitia James for a deposition this morning. (Felipe Ramales for Fox News Digital)

James claimed that Trump and his children, Donald Jr., Ivanka and Eric, as well as his associates and businesses, allegedly committed "numerous acts of fraud and misrepresentation" on their financial statements.

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James alleged Trump "inflated his net worth by billions of dollars" and said his children helped him to do so.

When Trump was president, James sued his administration dozens of times, challenging policies on the environment, immigration, education, health care and other issues.

AG James at ghost gun lawsuit press conference

NEW YORK, NEW YORK - JUNE 29: New York Attorney General Letitia James joins New York City Mayor Eric Adams during a news conference to announce a new lawsuit against "ghost gun" distributors on June 29, 2022 in New York City. The city's lawsuit is against 10 distributors of gun components which are used in the illegal, and largely untraceable "ghost guns" that have significantly contributed to the violence on the streets of New York City.  ((Photo by Spencer Platt/Getty Images))

Trump sued James in November and claimed she abused her position as attorney general to "recklessly injure" him, his family and his businesses.  Trump alleged James was pursuing "a relentless, pernicious, public, and unapologetic crusade" against him "with the stated goal of destroying him personally, financially, and politically."

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In January, Trump voluntarily dismissed that lawsuit.

Trump was deposed as part of the lawsuit in April for the second time. During that deposition, the former president and 2024 GOP frontrunner, answered questions. The first deposition took place in August, but Trump invoked his Fifth Amendment rights.

Trump has denied any wrongdoing and has said the investigation is politically motivated and a "witch hunt."