Former President Donald Trump Unable to Obtain Appeal Bond in $454 Million Civil Judgment

Donald Trump Fails to Secure Appeal Bond for $454 Million Civil Judgment

Former President Donald Trump has encountered a major setback in his legal battle as he struggles to obtain an appeal bond worth $454 million to secure a civil judgment against him. His attorneys revealed that their efforts to secure the complete appeal bond, which would require cash reserves approaching $1 billion, have been unsuccessful.

Unsuccessful Attempts to Secure Appeal Bond

Trump's legal team has approached approximately 30 surety companies through four separate brokers without success. Despite spending countless hours negotiating with one of the largest insurance companies in the world, they have been unable to secure the necessary bond.

Consequences of Failing to Post an Appeal Bond

Under New York court rules, Trump must post an appeal bond to avoid the New York Attorney General Letitia James from moving to collect the fraud judgment in the state's favor. James has made it clear that she will seize Trump's property if he is unable to pay the entire judgment or obtain an appeal bond.

Legal Strategy and Request for Oral Arguments

In response, Trump's lawyers have requested that the appellate division consider granting a stay of the judgment and schedule oral arguments on the issue. Additionally, they have asked for permission to approach the Court of Appeals, the highest state court in New York, to pause the judgment without the need for Trump to obtain an appeal bond in the full amount.

Background of the Civil Judgment

The civil judgment against Trump stems from a New York business fraud case in which Manhattan Supreme Court Judge Arthur Engoron ordered Trump and his co-defendants to pay a total of $464 million in damages and interest. The judgment was in favor of New York Attorney General Letitia James, who accused Trump, his two adult sons, the Trump Organization, and the company's top executives of falsely inflating asset values to boost his net worth and gain financial perks.

Challenges in Obtaining the Appeal Bond

Despite Trump's claims of substantial cash reserves, his lawyers detailed the challenges they faced in obtaining the appeal bond in their nearly 5,000-page court filing. Gary Giulietti, president of the Northeast division of the Lockton Companies, described the difficulty of securing a bond of this magnitude, citing practical impossibilities under the circumstances presented.

Requirements for Appeal Bond

Giulietti explained that only a handful of bond surety companies are approved to underwrite a bond of that size, and they would typically require cash or cash equivalents as collateral. He emphasized that it would be unattainable for a private company like the Trump Organization to obtain a bond of this size without having around $1 billion in cash or cash equivalents.

Financial Implications and Previous Offer

The court filing also highlighted the financial implications, indicating that bond issuers often demand collateral totaling 120% of the judgment, along with a significant upfront payment for the bond premium. The defendants had previously offered to post a $100 million bond, but the proposal was rejected by an appellate division judge.

Recent Legal Developments

It was noted that Trump had recently obtained a $91.6 million bond from insurance company Chubb to secure a civil defamation judgment against him in favor of writer E. Jean Carroll, for which he is also appealing the verdict.

Trump's ongoing legal challenges reflect the complexity and high stakes involved in the legal battles he faces, with significant financial and legal implications.