Former President Donald Trump is facing mounting legal challenges as he grapples with a significant civil fraud judgment against him in New York. In a filing to an appellate court on Monday, Trump’s legal team expressed difficulty in obtaining a bond for the full amount of the judgment, exceeding $450 million, including interest. This development raises concerns that the state attorney general’s office may initiate asset seizures unless the court intervenes to halt enforcement of the judgment during Trump’s appeal.
Bond Struggle: Practical Impossibility
Trump’s lawyers cited “ongoing diligent efforts” to secure a bond but deemed it a “practical impossibility” to obtain one for the judgment’s full amount. Despite approaching approximately 30 surety companies through four separate brokers, Trump’s legal team asserted the inability to secure the required bond. The deadline for posting the bond is March 25, prompting urgency in the legal proceedings.
Appeal Process
When appealing a civil judgment, defendants typically prevent collection efforts by either posting the full amount into an escrow fund or securing a third-party bond. Trump’s request to pause enforcement of the judgment was denied by an appeals court judge last month. The full panel of the New York appeals court is currently deliberating on whether to halt the judgment during Trump’s appeal process.
Financial Challenges
Trump’s financial constraints are evident in his struggle to meet the bond requirement. His legal team proposed posting a $100 million bond, significantly lower than the judgment amount, which was contested by the state attorney general’s office. Trump’s lawyers highlighted the lack of cash reserves to secure a bond exceeding $464 million collectively owed by Trump, his adult sons, business associates, and companies.
Asset Concerns
Trump’s financial woes extend beyond the civil fraud judgment, as he recently posted a separate $91.6 million bond in a defamation case. The collateral for this bond remains undisclosed, further complicating Trump’s financial predicament.
Outlook
The outcome of Trump’s appeal and his ability to secure a bond will significantly impact the resolution of the civil fraud case. The appellate court’s decision on halting enforcement or reducing the bond requirement will shape the course of legal proceedings and potentially alleviate Trump’s financial burden.
COMMENTS