The $350 million-plus Judgment rendered against Trump on Friday, in the Civil Lawsuit brought by New York Attorney General Letitia James (D) is a double whammy.
Paying such enormous Damages seriously depletes the Net Worth, of even a self-proclaimed Billionaire. More devastating to Trump, the Court’s Decision eviscerates His Public image as a shrewd New York Real Estate Mogul, an image He has carefully cultivated for Decades.
The massive Financial Headaches for Trump, are just beginning. Before He can Appeal the Verdict, Trump will have to Post-a-Bond or Pledge Assets, that could tally close to $400 million, equal to the Verdict plus 9% Post-Judgment Interest.
This assures that if Trump Loses the Appeals, the State of New York will Collect the Money.
A Business Litigation Observer previously said: Trump would have to Pay a Nonrefundable Fee of $18 million to obtain a Bond, for a $370 million Judgment, so slightly more than the actual Judgment. Any Company putting up the Bond will demand Collateral.
If Trump needs to Pledge any New York Properties or Assets, to the Bonding Company to Secure the Appeal Bond, an Independent Monitor appointed by Judge Arthur Engoron would have to be Notified by Trump in Advance.
Engoron’s Decision also Blocked Trump from borrowing Money from any Financial Institution Chartered to do Business in New York, America’s Financial Center.
Yet the enormous Damages are Not the only blow to Trump’s Pocketbook. The New York Trial Ccourt barred Trump from being an Officer or Director of any New York Entity, including the Trump Organization, for Three years. But Trump is the 51% Owner of All World Business Profits. Engoron imposed a similar Ban on Donald Trump Jr. and Eric Trump for Two years, and Ordered each to pay more than $4 million to the State.
In granting Summary Judgment in favor of James, the Court held that Trump, His Sons Donald Jr. and Eric, and Two Trump's Executives, and Mmultiple Trump Business Entities, are Liable under an Applicable New York Law, forbidding False Business Practices.
Trump’s serious Money Problems cannot be viewed in Iisolation. In another pair of Civil Cases alleging Defamation, brought against Trump in New York Federal Court by E. Jean Carroll, Two separate Juries have assessed $5 million and $83.3 million in Damages. Trump will have to Post Collateral or Bonds aggregating to $88.3 million plus Interest if He wants to Appeal.
No matter how rich Trump may be, Legal Liabilities approaching Half-a-Billion dollars, constitute a Financial Disaster. Trump’s go-to plan has been to raise Money from His Supporters to Pay His Legal Fee obligations. Indeed, He has spent almost $50 million of Campaign Funds on Lawyers’ Bills in the past year.
But while Trump has already Appealed to His Followers for more Money following this most recent Verdict, it seems unlikely that He will be able to Fundraise His way out of Trouble this time. Also, the Presidential Candidate still has a Political Campaign He needs to Fund.
On top of these Three Massive Judgments, Police Officers, Officers Family, and Members of Congress who were in the Capitol during the Jan. 6, 2021 Riot, have filed their own Civil Lawsuit against Trump, and Others for their alleged Roles fomenting the Violence.
Trump’s Strategy of seeking to Delay the multiple Criminal Prosecutions against Him until, after Election Day, doesn’t work for these Civil Cases.
If elected President, Trump could try to Dismiss the Federal Prosecutions, and Delay during His Presidency any sSate Prosecution.
But the Civil Cases against Him, will proceed whether Trump is President or not. The Supreme Court unanimously Ruled that a Civil Lawsuit against then-President Bill Clinton, for His Nonofficial Conduct, could continue during His Presidency.
NYC Wins When Everyone Can Vote! Michael H. Drucker
No comments:
Post a Comment