The Trump Arrest thread

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When a party receives an adverse money judgment and there are grounds for appeal, one of the first major considerations is how to stay enforcement of the judgment pending appeal. This is such a significant issue that for some, the ability, or perhaps inability, to stay enforcement will determine whether they can pursue the appeal.

Appeal bonds provided by surety insurance companies are the most common form of security used in almost all state and federal courts, yet how they are underwritten and the terms under which they are provided are unclear to many appellate practitioners. This article guides appellate practitioners through the fundamentals of appeal bonds, so they can help their clients protect their assets and ultimately pursue their right to appeal.

What exactly are appeal bonds?
Before getting into the details of how to obtain an appeal bond, it helps to understand what exactly they are and the guarantee they provide. Put simply, the purpose of an appeal bond is to maintain the status quo during appeal whereby the surety insurer issues a guarantee, on behalf of the appellant, to the appellee that, if the judgment is affirmed, the surety will pay the appellee if the appellant is unable to do so. In most jurisdictions, the bond not only covers the underlying judgment, but also costs and interest during the appeal up to a capped amount, typically between 1.2 and 1.5 times the judgment amount.

When you consider that most appeals do not result in a reversal of the lower court’s judgment, this creates a high likelihood that the surety providing the appeal bond will receive a claim. Factoring in that the premium rates for appeal bonds average around 1%, one claim could wipe out the premium earned on hundreds or potentially thousands of other bonds. As a friend of mine likes to say, this is bad math for anyone looking for a return on their investment.

How are appeal bonds underwritten?
Due to the high risk and probability of a claim, collateral in the full amount of the bond is typically required. There are exceptions to this general rule, and to consider providing a bond without collateral, surety insurers review the company or individual’s financial statements to determine if the financial strength is significantly greater than the bond required. If the surety is comfortable that the appellant has the resources to easily pay the judgment (not just today, but several years from now when the appeal concludes), the surety will likely provide the bond with just the appellant’s indemnity. Often this is limited to publicly traded companies, insurers, large private corporations, and very high net worth individuals.

Quote: SOOPOO

In a bizarre twist, DJT is apparently worth a BILLION or so more after the decreased bond requirement. Something about the value of his truth antisocial site. I am hoping he at least says thank you to Letitia James for helping grow his brand and net wealth.

(Paper gains for now; he is precluded from selling any of the stock for 6 months). I think it will be under the ticker DJT once IPO’d?

Quote: DRich

I have read his share is close to 2 - 3 billions dollars at the current stock price. I believe he won't be able to sell any during the lockup period which usually lasts at least six months. if he loses the election I would expect the stock price to drop from $57 to around $2. I also think it will drop quite a bit in the short term.

Quote: GenoDRPh

Truth Social's valuation is the ultimate fugazi.

Quote: SOOPOO

Agree. And disagree. If someone is willing to pay $$ for something, and I own it, then it’s worth $$. Because I can sell it for the $$.

It is spectacular that likely AS A DIRECT RESULT of all the Democrat led lawsuits against Trump he is worth a FEW BILLION M O R E than he was before the charges started piling up. Only in America…..

Quote: SOOPOO

Agree. And disagree. If someone is willing to pay $$ for something, and I own it, then it’s worth $$. Because I can sell it for the $$.

It is spectacular that likely AS A DIRECT RESULT of all the Democrat led lawsuits against Trump he is worth a FEW BILLION M O R E than he was before the charges started piling up. Only in America…..

Quote: ams288

You’re saying he wouldn’t have done the exact same scheme if he wasn’t facing the lawsuits?