Federal appeals court rejects bid to delay payment in Carroll case

A Manhattan federal appeals court late on Wednesday rejected a request to delay release of funds held since a 2023 trial. The court acted hours after the filing that sought an immediate administrative stay of a lower-court order. The order directed the clerk to disburse the $5 million principal plus post-judgment interest. With interest accrued, the total now stands at about $5.8 million.

Background on the funds The money has remained in a court-controlled account since June 2023 under an agreement between the parties. The agreement stated the funds would be released after certain legal developments, including denial of a Supreme Court appeal. The Supreme Court declined to hear the appeal on 29 June. Attorneys for the plaintiff then asked the trial judge to order disbursement.

Judge's memorandum The trial judge issued a memorandum explaining the decision to release the money. The memorandum noted that appeals through multiple levels had concluded and that rehearing and certiorari requests had been denied. The same memorandum stated that payment should now occur under the terms of the earlier stipulation.

Attorneys for the plaintiff argued that four years of litigation across federal courts had ended and that payment was now due.