Devendra Kumar
Donald Trump’s lawyers are urging a New York appellate court to excuse him from covering a $454 million fraud lawsuit judgment, claiming that the financial burden would cause “irreparable harm” before the appeal is decided. According to a letter written by one of Trump’s lawyers, Clifford Robert, the financial requirement is “patently unjust, unreasonable and unconstitutional.” The lawsuit stems from a recent civil business fraud trial, in which a judge ruled that Trump, his company, and key executives had deceived bankers and insurers by producing financial statements that hugely overstated his fortune.
Trump’s lawyers are seeking to hold off collection of the massive sum, without requiring him to post a bond or otherwise cover the judgment, while he appeals the outcome of the trial. However, the court has the option to automatically grant a reprieve if Trump were to put up enough money, assets, or an appeal bond covering what he owes. Trump’s lawyers contend that underwriters are unwilling to issue a bond for the huge amount, requiring instead cash, stocks, or other liquid assets.
The state of New York, led by Attorney General Letitia James, has suggested alternative options, such as dividing the total among multiple bonds from different underwriters or allowing a court to hold some of Trump’s property empire while he appeals. However, Trump’s lawyers reject these proposals, arguing that they would still require a substantial amount of liquid assets as collateral. Robert wrote in the letter that a court holding real estate during the appeal would be “impractical and unjust.”
Trump has taken to social media to express his disdain for the bond requirement, calling it “crazy.” He has also claimed that if he were to sell assets to cover the judgment, they would be gone forever, even if he eventually wins the appeal. The outcome of the appeal is uncertain, but Trump’s lawyers are pushing hard to avoid the financial burden of the massive judgment. Trump’s lawyers argue that the financial requirement would be a significant strain on his business and personal life, and would ultimately harm his ability to continue his business ventures.
The court is likely to consider Trump’s lawyers’ arguments carefully, weighing the potential harm to Trump against the need to uphold the court’s judgment. If the court does not grant a reprieve, Trump may be forced to sell or transfer significant assets to cover the judgment, which could have far-reaching consequences for his business and personal life. Ultimately, the outcome of this case will depend on the court’s assessment of the fairness and justice of the proposed actions.