Wednesday, July 3, 2024

Trump secures $91.6 million bond to challenge Carroll verdict

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Donald Trump successfully obtained a $91.6 million bond to delay payment of the verdict in E. Jean Carroll’s defamation case while he appeals, easing concerns about his ability to come up with the necessary funds amidst financial constraints.

The bond, secured through Chubb Ltd.‘s Federal Insurance Co., covers 110% of the $83.3 million judgment imposed on him by a New York jury in January, as stated by his attorney Alina Habba in a court filing on Friday in Manhattan. Trump faced a deadline of March 11 to either pay the judgment or post a bond.

Donald Trump, amidst a tumultuous legal landscape, is encountering financial pressures following unfavorable trial outcomes. Shortly after the Carroll verdict, a judge ordered Trump to pay $454 million to New York state for inflating his net worth significantly to secure better loan terms. He is required to post a bond in that case by March 25.

For more details: Keeping Up With Trump and His Legal Battles — A Timeline of Court Dates >

The former president also initiated an appeal in the Carroll case on Friday and requested the court to suspend the verdict during the appeal process, supported by the bond. Typically, courts mandate such bonds to guarantee the availability of funds for the winner of the trial if the appeal is unsuccessful.

Trump campaign spokesman Steven Cheung mentioned, “A bond has been filed in the full amount of the baseless judgment in the Democrat-funded Carroll Witch Hunt, which is being appealed and litigated.”

Carroll’s attorney Roberta Kaplan declined to provide further comments.

‘Least Trustworthy of Borrowers’

In 2019, Carroll publicly accused Trump of raping her in the 1990s, sparking a defamation lawsuit after he labeled her a liar from the White House to boost book sales and further a political agenda. The lawsuit detailed emotional distress suffered by Carroll and the tarnishing of her reputation due to social media attacks by Trump supporters.

Trump contends that the Carroll verdict is probable to be reduced on appeal, emphasizing that Carroll’s reputation was not as severely impacted as claimed and that her fame even grew after Trump’s accusation of dishonesty.

Carroll objected to Trump’s effort to delay posting the bond, asserting his financial capacity to compensate her if he loses the appeal. She described his plea as “the court filing equivalent of a paper napkin, signed by the least trustworthy of borrowers.”

The judge has not yet ruled on Trump’s request for a postponement. A hearing scheduled for Monday will address any disputes regarding the proposed bond’s form, amount, or surety after Carroll files her opposition.

The bond agreement, signed by Trump and his legal team on March 5, did not specify the cash or other assets presented as collateral. However, a recent court filing by Trump in the New York civil fraud appeal outlined properties like 40 Wall Street, Trump Tower, Trump National Golf Club Hudson Valley, and Trump Park Avenue in the state that could be utilized to meet the judgment if the appeal fails.

Trump petitioned the appeals court to permit him to post a $100 million bond in the civil fraud case, arguing that 110% of the total judgment would strain his finances.

Cash Crunch

The combined verdicts surpass the approximate $400 million in cash Trump claimed to possess, prompting questions about his ability to cover the awards during the appeal process. He aims to forestall the civil fraud judgment’s enforcement, expressing concerns about potential property sales at a loss. Trump has requested a smaller bond in that particular case.

Judge Kaplan, overseeing the Carroll trial, criticized Trump’s legal team for the delay in submitting the request to stay the verdict. The judge was unsympathetic towards Trump’s financial strains, emphasizing his procrastination in addressing the situation since the jury’s ruling on January 26.

The jury’s decision included $18.3 million in compensatory damages for the harm to Carroll’s reputation and an additional $65 million in punitive damages to penalize Trump and deter future defamatory statements.

The case details can be found here: Carroll v. Trump, 20-cv-7311, US District Court, Southern District of New York (Manhattan).

(Updates include Trump’s arguments starting in the sixth paragraph.)

–Assisted by Greg Farrell-bsp-person>.

To contact the reporter on this story:
Erik Larson in New York at elarson4@bloomberg.net

To reach the responsible editors for this story:
Sara Forden at sforden@bloomberg.net

Steve Stroth, Anthony Aarons

© 2024 Bloomberg L.P. All rights reserved. Used with permission.

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