Trump’s bond move in Carroll defamation suit halts immediate payout during appeal

Donald J. Trump recently took a significant legal step by posting a $91.6 million bond, connected to the defamation case he lost against writer E. Jean Carroll. This move comes as Trump faces more than half a billion dollars in civil penalties. The bond, supplied by an external insurance company, is a strategic effort to prevent Carroll from collecting the judgment while Trump appeals the decision.

A federal jury awarded Carroll $83.3 million in damages this January. Trump’s request to pause the judgment was denied, increasing the urgency to secure the bond or find the funds independently. With a looming deadline, Trump managed to post the bond, covering the original judgment and additional interest costs. This bond represents a company’s promise, in this case, Federal Insurance Company, to cover Trump’s judgment if his appeal fails and he cannot pay. In return, Trump has agreed to pay a premium and provide collateral.

The implications of Trump’s appeal are significant, with his lawyer expressing confidence in overturning the judgment. The bond acts as a temporary shield against the immediate collection of the award by Carroll. Trump’s legal challenges extend beyond this case, including four criminal indictments and a separate civil judgment of over $450 million in a fraud lawsuit.

The Carroll case stems from her allegations of rape against Trump in the mid-1990s, detailed in her 2019 memoir. Trump’s vehement denial of the accusations led to Carroll’s defamation lawsuit, culminating in the recent jury award. The bond’s posting is a critical moment in this ongoing legal battle, reflecting the complex interplay between financial resources, legal strategy, and the pursuit of justice.