HomeInsurance"Chubb is on the hook now": Trump secures bond in Carroll case...

“Chubb is on the hook now”: Trump secures bond in Carroll case — Expert asks what’s the collateral?

Donald Trump posted a $91.6 million bond to cover the $83.3 million a Manhattan jury awarded to writer E. Jean Carroll in January as he appeals the defamation lawsuit’s verdict, lawyers for Trump told a court Friday. Attorney Alina Habba filed the papers with a New York judge alongside a notice showing that Trump, the likely GOP presidential nominee, is appealing the verdict.

The bond would cover the full judgment plus interest and was necessary to delay payment of the sum until the 2nd U.S. Circuit Court of Appeals, can bring down a decision on the former president’s appeal, the Associated Press reports.

Trump secured the bond from “Federal Insurance Company, which is a principal of The Chubb Corporation,” MSNBC legal correspondent Katie Phang reports. The Chubb Corporation is a global insurer headquartered in New Jersey.

“It will be interesting to see if the judge requires clarification be provided (likely solely to the court) regarding what kind of collateral Trump provided to Chubb to get the bond,” national security lawyer Bradley Moss wrote on X. “But either way, Chubb is on the hook now.” 

Trump’s filings came a day after Judge Lewis Kaplan denied the former president’s request to delay a Monday deadline for posting a bond, in an effort to make sure Carroll can receive the judgment if it’s maintained following appeals.

Trump faces intense financial strain in covering both the judgment of the Carroll lawsuit and the larger lawsuit from the New York Attorney General, in which he was found liable for defrauding banks and insurers in financial statements. 

A New York Judge refused to pause collection on the $454 million fraud penalty ordered in the suit while Trump appeals, leaving the former president until March 25 to either foot the bill or secure a bond covering the amount. Interest on the civil fraud judgment accrues at roughly $112,000 each day. 

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