NEW YORK – Former President Donald Trump has obtained a $91.6 million bond to cover his debt in a defamation lawsuit filed by writer E. Jean Carroll, while he appeals the jury’s verdict. Trump’s lawyer, Alina Habba, filed papers with a New York judge to show that the bond was secured from the Federal Insurance Co. This bond will cover the $83.3 million judgment in the lawsuit, along with interest.
At the same time, Habba filed a notice indicating that Trump, the likely 2024 Republican presidential nominee, is appealing the verdict. Posting the bond was a necessary step to delay payment of the award until the 2nd U.S. Circuit Court of Appeals rules on Trump’s legal challenge.
These filings came after Judge Lewis A. Kaplan rejected a request to delay the deadline for posting a bond to ensure that Carroll can collect the judgment if it remains intact after appeals.
Trump is currently facing financial pressure as he also needs to set aside funds to cover a larger judgment in a separate lawsuit where he was found liable of lying about his wealth in financial statements given to banks.
A New York judge recently declined to suspend collection of a $454 million civil fraud penalty while Trump appeals. He now has until March 25 to either pay or obtain a bond to cover the full amount. Additionally, interest on the judgment continues to accrue at a rate of approximately $112,000 per day.
Trump’s legal team has requested a stay on the judgment, warning that he may need to sell some properties to cover the penalty.
In a civil trial held last May, a New York jury found that Trump had sexually assaulted Carroll in 1996. Trump vehemently denies these allegations, claiming that he did not know Carroll at the time and that the alleged encounter at a luxury department store never took place.
The jury awarded Carroll $5 million for both the alleged assault and the damage to her reputation caused by Trump’s public denial. In January, a second trial was held to determine additional financial damages for derogatory comments Trump made about Carroll in 2019 while he was still president. The judge instructed the jury to accept the earlier jury’s findings regarding the sexual abuse.
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