Michael Avenatti, Clifford's attorney and a potential 2020 Democratic presidential candidate, said Clifford would appeal.
The lawyer said the exact amount of legal fees owed would be determined later.
She also pointed out that if she had gone to the police a public record would have been produced and she likely would have had to explain that she had a previous alleged sexual encounter with Trump, which is why the threat took place.
Daniels is separately suing Trump and Cohen in an attempt to void a 2016 nondisclosure agreement that prevents her from speaking publicly about her alleged affair with Trump.
Instead the man threatened the adult film actress and her daughter, telling her to 'forget about this story, leave Mr. Trump alone'.
"A sketch years later about a nonexistent man".
"The First Amendment (of the US Constitution) protects this type of rhetorical statement".
The judgment defined "rhetorical hyperbole" as "extravagant exaggeration employed for rhetorical effect" and said Mr Trump's tweet had "an incredulous tone, suggesting that the content of his tweet was not meant to be understood as a literal statement about Plaintiff".
"Trump's contrary claims are as deceptive as his claims about the inauguration attendance", Avenatti tweeted Monday night. "We will appeal the dismissal of the defamation cause of action and are confident in a reversal", he tweeted.
Daniels has said she had sex once with Trump in 2006, and carried on a friendship with him for about a year.
Trump and a White House spokesperson have denied having an affair with Daniels.
Trump's lawyer Charles Harder called the ruling a "total defeat" for Daniels, saying that "no amount of spin or commentary by Stormy Daniels or her lawyer, Mr. Avenatti, can truthfully characterize today's ruling in any way other than a total victory for President Trump".
A combination photo shows Adult film actress Stephanie Clifford, also known as Stormy Daniels speaking in New York City, and U.S. President Donald Trump speaking in Washington, Michigan, U.S. on April 16, 2018 and April 28, 2018 respectively.
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Make no mistake, the Astros accomplished what they wanted at Fenway Park, taking Game 1 and home-field advantage in the series. He fell to the warning track, but after the training staff and manger AJ Hinch went out to check on him he stayed in the game.
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