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Trump’s Defamation Bond’s Unconventional Clause Raises Questions Among Legal Experts

A peculiar provision in the bond issued by Chubb Insurance for Donald Trump’s defamation case against E. Jean Carroll has attracted scrutiny.

This clause stipulates that if the appeal against the case is lost, Chubb must pay the entire bond within two months.

Legal Expert Voices Concerns

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Legal expert Joyce Vance described the provision as “unusual” for such contracts.

Vance pointed out the potential ramifications of this deadline, emphasizing its departure from standard practices.

Details of Trump’s Bond Obligation

Credits: DepositPhotos – BRUSSELS, BELGIUM – JULY 12TH, 2018: Press conference of Donald Trump, President of United States of America, during NATO (North Atlantic Treaty Organization) SUMMIT 2018 — Photo by gints.ivuskans

Trump needed to raise the entire amount to appeal the ruling. An additional 9% annual interest was also added, which would be refundable if the former President succeeded in the appeal.

As is usual in such cases, Trump opted to use an insurance firm, a subsidiary of Chubb Insurance.

Analysis of Unusual Provision

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In her case analysis, Vance highlighted the bond’s 60-day time limit as a noteworthy aspect.

She underscored the significance of this timeframe, particularly in the event of an unfavorable appellate ruling for Trump.

Implications for E. Jean Carroll

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Vance stressed how the provision ensured that Carroll would promptly be paid the amount she had won if the appeal didn’t go through.

This aspect of the bond safeguards Carroll’s interests in the legal proceedings.

Legal Proceedings and Court Response

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The judge overseeing the case granted her lawyers time through Monday to object, in which case he would hear her argument the same day.

Previous Defamation Rulings Against Trump

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So far, Trump owes Carroll more than $90 million, which she has won in two different cases regarding acts of defamation.

These lawsuits stem from Carroll’s allegations about Trump’s sexual assault on her about 30 years ago, which Trump vehemently denies.

Trump’s Public Remarks

Credits: Depositphotos – Milwaukee, Wisconsin / USA – January 14th, 2020: 45th United States President Donald J. Trump held a Make America Great Again Rally at UW-Milwaukee Panther Arena and gave a powerful speech. — Photo by samael1986

Trump reiterated these denials at a recent campaign rally once again.

He expressed frustration at the financial burden resulting from what he deemed baseless allegations.

Court Mandate for Bond Posting

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Trump’s obligation to post the bond was necessitated by the requirement to proceed with his appeal against the defamation ruling. 

Trump’s Potential Legal Exposure

Credits: Depositphotos – Washington, DC / USA – July 9 2018: USA President Donald Trump in the Supreme Court of the United States, serious angry look during a speech. — Photo by wadiifekar

Trump’s critical remarks about Carroll and the presiding judge during the Georgia rally could expose him to further legal ramifications.

By challenging the court’s decisions and doubting the credibility of involved parties, Trump risks complicating his legal standing.

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