Donald Trump secured a $91.6 million bond from insurer Chubb in order to allow the former president to appeal an $83.3 million verdict against him in the E. Jean Carroll defamation case.
The surety bond contract with Chubb’s Federal Insurance Co. was signed by Trump earlier this week. Though it prevents writer Carroll from immediately collecting the award, it is a promise Federal will pay if Trump loses the appeal or fails to pay.
UPDATE: Chubb’s Greenberg Defends Issuing Appeal Bond to Trump: ‘We Don’t Take Sides’
Chubb sent a statement when reached for comment and said it does not talk about specific clients, but added that its surety division provides appeal bonds “in the normal course of business.”
“These bonds are an ordinary and important part of the American justice system, protecting the rights of both defendants and plaintiffs,” Chubb said. “For defendants, appeal bonds ensure the opportunity to exercise the right to appeal an adverse judgement, which might otherwise be lost in the absence of a bond.
“For plaintiffs, appeal bonds ensure that they will receive the damages when an award is confirmed on appeal, eliminating the need to chase a defendant for payment. This guaranty provides peace of mind as a plaintiff awaits finality in the appeals process.”
In January, a federal jury in Manhattan awarded the sum of a $65 million punitive award and $18.3 million in compensatory damages to Carroll after a defamation trial. The year prior, Carrol was awarded $5 million in a sexual assault case against the former president.
Trump had asked the judge to suspend the jury award in the defamation case as he appealed the verdict but the request was denied. Trump needed to secure the bond, which includes interest, before Monday to pause the execution of the judgement.
Nick Newton, senior vice president at Assured Partners and immediate past president of the National Association of Surety Bond Producers said he frequently writes appeal bonds and they can be difficult since—due to court deadlines—time is of the essence and insurers “are often not able to do a thorough investigation.” The bonds are underwritten to a 0% loss since most appeals are not successful.
Newton said the bond premium is typically 1-2% of the jury award but terms can be negotiated. Also, 100% collateral is required and the collateral “has to be liquid [assets],” Newton said.
Topics Chubb
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