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Donald Trump loves the musical Cats, and like the titular creatures, the former president seems to have nine lives. Today, in the face of yet another near-death financial experience, Trump got his latest reprieve. An appeals-court panel in New York State reduced the bond he must post in a civil fraud case from more than $464 million to just $175 million.
Given that the past few months have seen Trump repeatedly use legal procedures to his advantage, drawing out the cases against him in the hope of eventually escaping them, this decision may look like yet another infuriating case of Trump extracting injustice from the justice system. But in fact it is not such an instance, and the reduction is actually quite appropriate.
Recall the timeline. In mid-February, Justice Arthur Engoron ruled that Trump must pay more than $350 million, plus interest, after he, his sons, and the Trump Organization engaged, according to the judges findings, in a years-long pattern of fraud, inflating and deflating the reported value of his assets in order to profit long-term. Trump promptly appealed the ruling, but as a defendant, he must post the value of his judgment while appealing.
David A. Graham: Trumps money problems are very real and very bad
The problem for Trump is that $350 million (which interest soon brought to nearly half a billion dollars) is a huge amount, even for him. He claims to have a net worth in the billions, but that number includes a great deal of assets that arent really available. Part of it is nebulous brand value, but a lot is in real estatevalue that cant be quickly accessed. Trump claimed in a deposition in the case that he had more than $400 million in cash and growing. Thats questionable and, even if true, wouldnt leave him enough to cover the bond.
Instead, he sought to obtain a bond from a company that specializes in such products. Bonding companies promise courts to cover the cost of a judgment. In return, they usually demand collateral from a client such as Trumpor maybe particularly from Trump, given his long history of not paying his debts. One of them this month posted a bond in the much smaller judgment against Trump for defaming the writer E. Jean Carroll. But Trump was unable to obtain a bond large enough to cover the fraud judgment, even after approaching 30 companies. His lawyers said it was a practical impossibility in a filing. (Trump, ever helpful to his own defense, claimed on social media that he actually has more than $500 million in cash.)
The bond was due today, and Trump got his good news from the court just in time. It is a stay, or pause, not a permanent reduction. For now, the original judgment amount will still be due if Trump doesnt win on appeal. Todays outcome is neither a shock nor a travesty.
Offering temporary relief on the bond makes some sense. Imagine that the panel had not reduced the bond amount. Attorney General Letitia James could have started seizing his accounts or his properties, or else he would have been forced to start selling them. But this is a terrible moment to be selling commercial real estate, because the office market has not recovered from COVID. Beyond that, any buyers would know Trump was in a pinch and be happy to profiteer off him.
Read: The cases against Trumpa guide
But then imagine that a few weeks from now, Trump won his appeal, convincing the court that Engorons finding was incorrect, or that the calculated amount of the penalty was unfair. Trump would have no way to recover the assets hed been forced to unload at fire-sale prices. It doesnt take any affection for Trump to see why a court would want to avoid such an outcome, and whyeven if Trump would still be filthy richthis would be unjust punishment.
The problem for Trump remains winning on appeal. He railed against Engoron in a statement and claimed that the judge was wrong on law, but legal experts told me that they thought Trump would struggle to win his appeal. Engorons decision was written in clear detail, as was his calculation of Trumps penalty, which is based on how much ill-gotten gain Trump extracted from his fraud. The judge here did a very good job, Jim Wheaton, a law professor at William & Mary, told me. Whether you agree or not, the judge very carefully made factual conclusions based on testimony in front of the judge. The judge made credibility decisions based on testimony of witnesses before him.
David A. Graham: Trumps fraudulent ways cost him $355 million
Trumps instinct for stalling the legal cases against him is pernicious. U.S. courts must find a way to balance the need for procedural protection with the principle that justice delayed is justice denied, and so far they have shown themselves ill-equipped; consider that the U.S. Supreme Court wont even hear arguments about Trumps immunity from criminal prosecution until a month from today. But forcing Trump to put a FOR SALE BY OWNER sign out in front of Trump Tower today wouldnt serve justice, and might actually undermine it. As for Trump, he may just be delaying that outcomebut thats another problem for him to try to wriggle, cat-like, out of on another day.
Harrods is preparing to take legal action against the estate of its former owner, Mohamed al-Fayed, as the multimillion-pound legal bill for compensating his sexual abuse victims continues to escalate.
Sky News has learnt that the Knightsbridge department store, which has been owned by a Qatari sovereign wealth fund since 2010, plans to file a so-called passing-over application in the High Court as early as next week.
The intention of the application is to secure the removal of Mr al-Fayed‘s estate’s current executors, and replace them with professional executors to administer it instead.
Professional executors would be expected to investigate the assets and liabilities of the estate, while Harrods insiders claimed that the current executors – thought to be close family members of the deceased billionaire – had “ignored” correspondence from its lawyers.
Sources close to Harrods said the passing-over application paved the way for it to potentially seek to recover substantial sums from the estate of the Egyptian tycoon as it contends with a compensation bill likely to run to tens of millions of pounds.
In a statement issued to Sky News on Saturday, a Harrods spokesperson said: “We are considering legal options that would ensure that no doors are closed on any future action and that a route to compensation and accountability from the Fayed estate remains open to all.”
Mr al-Fayed is believed to have raped or sexually abused hundreds of women during his 25-year tenure as the owner of Harrods.
More on Mohamed Al Fayed
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He died in 2023, since when a torrent of details of his abuse have been made public by many of his victims.
Earlier this year, Sky News revealed details of the compensation scheme designed by Harrods to award six-figure sums to women he abused.
In a form outlining the details of the Harrods redress scheme overseen by MPL Legal, which is advising the department store, it referred to the potential “for Harrods to recover compensation paid out under this Scheme from Mohamed Fayed’s estate”.
“You are not obliged to assist with any such claim for recovery,” the form told potential claimants.
“However, if you would be willing to assist Harrods including potentially by giving evidence against Fayed’s estate, please indicate below.”
This weekend, there appeared to be confusion about the legal representation of Mr al-Fayed’s estate.
In March, the BBC reported that Fladgate, a UK-based law firm, was representing it in an article which said that women who worked for him as nannies and private air stewards were preparing to file legal claims against the estate.
This weekend, however, a spokesman for Fladgate declined to comment on whether it was acting for Mr al-Fayed’s estate, citing confidentiality restrictions.
A source close to the law firm, meanwhile, insisted that it was not acting for the estate.
KP Law, another law firm acting for some al-Fayed abuse survivors, has criticised the Harrods-orchestrated process, but has itself faced questions over proposals to take up to 25% of compensation awards in exchange for handling their cases.
Harrods insiders said there was a growing risk that Mr al-Fayed’s estate would not be responsibly administered given that the second anniversary of his death was now approaching.
They added that as well as Harrods itself seeking contribution for compensation paid out for Mr al-Fayed’s abuse, its legal action would also potentially open way for survivors to claim directly against the estate.
Victims with no direct connection to Harrods are not eligible for any compensation through the store’s own redress scheme.
Even if Harrods’ passing-over application was approved by the High Court, any financial recovery for the department store would be subject to a number of additional legal steps, sources said.
“The passing-over action would achieve the goals of acknowledgement and accountability from the estate for survivors who don’t have the resource to undertake a passing-over application themselves,” an insider said this weekend.
A father returning home after scattering his wife’s ashes was among the victims of the Air India crash, leaving his two young children suddenly orphaned.
Flight 171 was carrying 242 people when it struck a medical college hostel less than a minute after taking off from Ahmedabad airport, in western India.
Twenty-nine people on the ground were killed, taking the total number of victims to 270. A hospital official confirmed 270 bodies have been recovered from the crash site, but DNA testing is being conducted to identify the bodies.
Among the victims, 37-year-old Arjun Patoliya had been visiting India to fulfil his wife Bharti’s “final wish” to be laid to rest in her hometown of Gujarat.
Bharti had died just over two weeks ago, following a “courageous battle with cancer”.
A GoFundMe page, set up to raise funds for their two children, says: “Arjun left to bid farewell to his wife, never returned to the children they both raised.
“Now, these two beautiful young girls have been left without parents – their world turned upside down in just over two weeks.”
A fundraiser, which has topped more than a quarter of a million pounds, confirms all money raised will go directly into a legal trust, “to ensure every penny is dedicated to the girls’ needs”.
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India’s aviation minister has said a government panel reviewing the crash will complete its assessment in three months.
Ram Mohan Naidu said the government has also ordered “extended surveillance” of Boeing 787 planes. Air India operates 33 Boeing 787s, while rival airline IndiGo has one, according to data from Flightradar24.
Mr Naidu said the plane started descending after reaching 650 feet.
Every theory as to what happened will be looked into, he said. But in the meantime, he has instructed the airline to assist the families of passengers to ensure there is no delay in handing over the bodies of those who died.
Black box has been found
India’s aviation ministry says workers have recovered the digital flight data recorder – one of two black boxes on the plane, from the rooftop of the building where it crashed.
This box has data on engine and control settings, so will be able to show if there was a loss of engine power or lift after takeoff.
The investigation will initially focus on the engine, flaps and landing gear, a source told Reuters on Friday.
A possible bird-hit is not among the key areas of focus, the source said, adding that teams of anti-terror experts were part of the investigation process.
There is no information yet on the cockpit voice recorder, the other black box, which will be a crucial part of understanding what caused the plane to crash.
Roads have been flooded and a landslip has disrupted trains as the UK was hit by tens of thousands of lightning strikes during thunderstorms – with severe weather warnings in place for large parts of the country.
It follows the hottest day of the year on Friday, which saw a high of 29.4C (84.9F) in Santon Downham in Suffolk.
The Met Office has issued an amber weather warning until 6pm across the South West, North East and North of England, Wales and much of Scotland.
It said there had been more thann 30,000 lightning strikes during the night, with the “vast majority” over the sea.
The Met Office has warned some areas could see 30-50mm of rain in a few hours, while a few locations could reach up to 80mm.
At the same time, strong wind gusts and hail accompanying the storms could potentially bring road flooding, difficult driving conditions, power cuts and flooding of homes and businesses.
The Environment Agency urged the public not to drive through flood water, reminding drivers that “just 30cm of flowing water is enough to move your car.”
A further yellow warning is in force in the eastern half of Northern Ireland from 6am to 6pm on Saturday, while a similar warning has been in place across the South East of England overnight following an amber alert on Friday.
Image: Thunderstorm warnings are in place until Saturday evening. Pic: Met Office
Kent experienced heavy rainfall overnight, with flooded roads in parts of Dover, while a fire in a residential building in St Leonards-on-Sea on Friday night was likely caused by a lightning strike, the East Sussex Fire and Rescue Service say.
Devon received five flood warnings overnight by the Environment Agency, alongside 46 flood alerts in the South West, South East and Midlands.
A further six flood alerts have been put in place by Natural Resources Wales in South Wales.
National Rail said a landslip had stopped all services between Exeter St Davids and Okehampton, with the weather conditions meaning it is not safe for engineers to reach the site. Disruption is expected until around 1pm.
Other rail operators also warned customers to check for updates on services on Saturday morning.
Heathrow Airport apologised to passengers late on Friday night for flights delayed by “adverse weather conditions”.
Sky News weather producer Steff Gaulter said: “The most active thunderstorms are over parts of Wales, Northern Ireland, Northern England and Scotland, and some are still bringing localised downpours and strong winds.
“The storms will continue northwards, becoming largely confined to Northern Ireland and Scotland by the afternoon. Elsewhere will see a mixture of sunshine and showers, with the showers tending to ease during the day.
“Then from tomorrow an area of high pressure will start to stretch towards us, and the weather next week is looking far calmer and quieter.”
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Despite the risk of heavy showers and thunderstorms, not everyone will see rain during the day, with the driest and brightest weather expected in the South East, which will remain very warm.
The UK Health Security Agency (UKHSA) has issued its first yellow heat-health alert of the year, active until 8am on Sunday in the east of England, East Midlands, London, and the South East.
Under the UKHSA and the Met Office’s weather-health alerting system, a yellow alert means there could be an increased use of healthcare services by vulnerable people.
A yellow alert warns of a possible spike in vulnerable people accessing healthcare, and health risks for the over-65s and those with conditions such as respiratory and cardiovascular diseases.
While scientists have not assessed the role of global warming in this short-term event, in general they expect more heavy downpours as the climate changes.
That’s largely because hotter air can hold more moisture and so releases more water when it rains.