A New York judge has rejected the challenge by New York Attorney General Letitia James to the $175 million bond ruling in Donald Trump’s civil lawsuit.
A New York judge has ruled that the $175 million bond judgment from former President Trump’s non-jury trial, which stemmed from his civil case, will stand. This was after New York Attorney Letitia James tried to invalidate it.
James’ lawyers argued on Monday that the court should annul Trump’s reduced judgment of $175 million in his civil fraud non-jury trial. James questioned if the company Knight Specialty Insurance which posted the huge bond could pay it if necessary.
The court, though, ruled against James, deciding that the bond would stand.
Knight Insurance holds the bond and has set conditions for it.
The court ruled that the $175,000,000 must be in cash, not in securities or mutual funds where their value could fluctuate. Knight Insurance will not be able to trade or move money. However, the court ruled that they could retain control over the account.
The court also decided that Knight Insurance had to provide James with a monthly statement showing the $175,000,000 in cash. It also decided that this agreement could not be changed without the approval of the court.
AG James contested the reduction in the bond amount from $450 to $175 million by the court of appeals and questioned Knight Insurance’s legal standing in New York. (The company is based out of Los Angeles).
Trump, while appealing the decision earlier this month with Knight Specialty Insurance Company in California (KSIC), posted the bond. The bond had been reduced substantially during a separate appeal. James objected immediately, noting that KSIC wasn’t licensed in New York. He also raised questions about the “sufficiency of the bond”.
Trump and KSIC submitted a motion, backed up by documents, that showed that the bond was financially sound and it was guaranteed by the cash of the former president earlier this week. They argued that James had incorrectly objected and Engoron urged her to pay legal fees.
The President has denied all the allegations made against him and will continue to do so.
Soon, a final decision on the bond amount will be made. If the court overturns the bond reduction, former President Trump will be responsible for the $450 million original bond. The court could seize the real estate in New York owned by President Trump to pay the bond.
A recent survey found that only one-third of Americans believe President Trump did anything wrong in the Manhattan fraud trial. The poll was not a civil case but it could be indicative of the way the public feels about the legal cases against the former president. As of this writing, Trump has a slight lead over Biden in both the RealClearPolitics national average polling and the RealClearPolitics aggregates for battleground states polling. Trump’s ability to fight off the legal challenge does not seem to have a significant impact on those numbers, but what happens in November is anyone’s guess.
This story is developing. We will continue monitoring this case and keep you updated as the situation warrants.
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