FIRST ON FOX: A New York Court assigned a new judge to preside over the civil fraud case against President-elect Trump brought by New York Attorney General Letitia James, seemingly replacing Judge Arthur Engoron, but hours later, the court put him back on the case, sources close to Trump's legal team told Fox News Digital. 

The case and the trial were handled by Judge Arthur Engoron, who was accused by Trump allies of acting with bias against the president-elect, his family and his company. 

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Sources familiar told Fox News Digital the court sent out an automated email at around 12:45pm on Thursday, notifying the parties that it had assigned New York County Supreme Court Justice Judith McMahon of Staten Island to the case. 

But several hours later, at 4:12pm, attorneys on the case received another automated message from the court system notifying them that Judge Arthur Engoron was assigned back to the case. 

A source close to Trump's legal team told Fox News Digital that they are concerned with the back-and-forth. 

The case is pending on appeal. After the appeals court issues its decision, the case will be remanded to a lower court, which Engoron presided over during the trial. 

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Engoron, after a weeks-long non-jury civil fraud trial that began in October 2023, ruled last year that Trump and defendants were liable for "persistent and repeated fraud," "falsifying business records," "issuing false financial statements," "conspiracy to falsify false financial statements," "insurance fraud," and "conspiracy to commit insurance fraud." 

But before the trial began, Engoron issued a summary judgment against Trump, making the subsequent trial a case over the penalty to be paid. 

Notably, during the case, Engoron allowed the value of Trump's Mar-a-Lago to be listed at $18 million. President Trump disputes that valuation, saying the property is worth 50 to 100 times more than Engoron's estimation. And real estate insiders and developers argued the property could list at more than $300 million. 

In his ruling in the case last year, Engoron took a shot at Trump, criticizing him for his participation in the trial, stating that he "rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial." 

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"His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility," Engoron wrote. 

Over the course of the trial late last year, Trump, Trump allies, Republicans and legal experts repeatedly criticized Engoron, who throughout his career has exclusively donated to Democrats, over his handling of the case. 

Engoron is also reportedly subject to a probe over unsolicited advice he received on the case. 

Trump and his family denied any wrongdoing, with the former president saying his assets had been undervalued. Trump's legal team insisted that his financial statements had disclaimers and made it clear to banks that they should conduct their own assessments.

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Trump appealed the $454 million judgment. The appeal is pending before the New York Appeals Court. 

Judges on the New York appeals court appeared receptive last year to the possibility of reversing or reducing the $454 million civil fraud judgment. 

The president’s attorneys called Engoron’s ruling "draconian, unlawful, and unconstitutional." 

Trump attorney D. John Sauer, the incoming solicitor general, argued that James’ lawsuit stretched New York consumer protection laws and said there were "no victims" and "no complaints" about Trump’s business from lenders and insurers. 

Sauer said the case "involves a clear-cut violation of the statute of limitations," pointing to transactions used in the non-jury civil fraud trial that dated back more than a decade. 

Sauer said if the verdict is not overturned, "people can’t do business in real estate" without fear. 

Editor's Note: This story has been updated to reflect new information.