|This article needs additional citations for verification. (December 2009)|
This is a feature of common law, and in particular the American legal system. In most European countries an appeal leads to an automatic stay of execution, unless the judge expressly ordered immediate execution.
Supersedeas bond rules in the United States
The amount and availability of a supersedeas bond depends on state regulations and case specifics.
In New Jersey, the posting of a bond is not required to appeal a decision. However, if the party wishes to stay a judgment during the appeal, a motion must be made with the Superior Court, and the Court can require the posting of a bond or cash deposit under R.2:9-5. The same rule applies in Delaware under the State Constitution as well as the court rules.
Arizona Rules of Civil Appellate Procedure, Rule 7, provides that "except in cases involving custody of children," an appellant may obtain a stay on a lower court judgment and all other further proceedings by filing a supersedeas bond in the Superior Court. ARCAP 7(a)(1).
- Under subsection (a), the amount of the bond must equal 1) the amount of compensatory damages awarded in the judgment, 2) interest for the estimated duration of the appeal, and 3) costs awarded in the judgment.
- Under subsection (b), notwithstanding the requirements of subsection (a), the security cannot equal the lesser of 1) 50 percent of the judgment debtor's net worth or 2) USD$25 million.
- Under subsection (c), if the judgment debtor shows that the amount of the security would cause "substantial economic harm", the trial court is required to lower it to an amount that would not cause such harm.
- Subsection (d) allows an appellate court to review and modify the amount of security, but not to exceed the limitations above.
- Subsection (e) permits a trial court to enter orders preventing dissipation or transfer of assets to avoid satisfaction of the judgment, but not so as to prohibit use, transfer, conveyance, or dissipation of assets in the normal course of business.
Obtaining a supersedeas bond may appear to be judicial red tape; however, it serves the best interest of the defendant and plaintiff. The appellant uses a supersedeas bond to stay the execution of the judgment, meaning appellant does not have to pay the full amount of the judgment until the appellate court makes a ruling and then only if the ruling is to affirm the judgment. A surety bond also replaces the need for collateral. The plaintiff, or party whom the money judgment is awarded, is fully protected by the bond and ensured payment.
- http://www.statutes.legis.state.tx.us/Docs/CP/htm/CP.52.htm Texas Civil Practice and Remedies Code, Section 52.006.
|This legal term article is a stub. You can help Wikipedia by expanding it.|