One line buried in the agreement may be cause for concern for James, according to a new report from The Daily Beast, which described the contact as “bizarre” and “shadier than it looks.”
The contract includes a line that if the judgment is “affirmed” or the “appeal is dismissed,” the defendants in the case “shall pay to Plaintiff…the sum directed to be paid by the Judgment plus interests and costs or any part of it as to which said Judgment is affirmed,” without a guarantee the insurance company would pay.
This essentially means that Trump will be required to pay the judgment if he loses the appeal but leaves questions about whether the insurance would pay if he is unable, essentially leaving James in the same position as before Trump secured the bond, according to the report.
In NY an appeal bond is subject to approval by the winning party, in this case Letitia James on behalf of the state. All she has to do is turn it down, and Trump is right back where he started. She stated her intention to do so last week, and that will be accompanied by a hearing in front of Judge Engoron.
If he loses the appeal or the appeal is dismissed, he’s on the hook no matter which way you slice this. If Knight Specialty Insurance Company and/or Mr. Hankey will not agree to be bound to repay in the event of Trump’s default, regardless of the means by which they try, then it’s not a valid appeal bond in the state of New York --and Letitia James is anything but stupid. She refused the bond last week; only now are reporters catching up on the specifics of why she did so.
This whole article is a big fat nothing, situation unchanged. Trump just wanted to stop the collection by any means possible, as soon as possible. Wait for the hearing if you want real news.