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Appeal Bond Reform

STATE

STATUTORY CITATION

PROVISIONS

Alabama

Ala. Code § 12-19-272

Repeals Alabama's affirmance fee rule, which assessed a fee of 10% of the judgment against defendants (but not plaintiffs) who appealed cases and lost.

Arizona

Arkansas

Ark. Code Ann. § 16-55-214

Limits the appeal bond required in civil action to $25,000,000.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may require bond be posted in an amount equal to the full judgment.

Colorado

Colo. Rev. Stat. § 13-16-125

Limits the amount of the bond defendant is required to pay in order to appeal a judgment to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may require bond be posted in an amount equal to the full judgment.

Florida

Fla. Stat. § 768.733

Fla. Stat. § 45.045 Limits the amount of bond a defendant is required to pay in order to appeal the punitive damages portion of a judgment to the lesser of $100 million or 10% of defendant's net worth. Applicable only to civil class actions.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may increase the bond to the amount of the punitive judgment plus twice the statutory rate of interest.

Limits the amount a defendant can be required to pay to secure the right to appeal in any civil action, except for certified class actions subject 768.733, to $50 million.

Georgia

Ga. Code Ann. § 5-6-46

Limits the amount of appeal bond for civil actions to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

Hawaii

Haw. Rev. Stat. § 607-26. [Section Designation by Publisher; official designation pending]

Limits the amount a defendant can be required to pay to secure the right to appeal to $25 million. Limits the amount a small business can be required to pay to secure the right to appeal to $1 million.

Idaho

Idaho Code § 13-202

Limits the amount defendants must pay in order to appeal punitive damages in any judgment to the first $1 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may require bond be posted in an amount equal to the full judgment.

Indiana

Ind. Code § 34-49-5-3

Limits the amount of appeal bond to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may enter orders to protect the appellee and require bond be posted in an amount equal to the full judgment.

Iowa

Iowa Code § 625A.9

Limits the amount a defendant can be required to pay to secure the right to appeal to 110% of the judgment and in no cases to exceed $100 million.

This limitation shall not apply in cases where the court finds that the defendant intentionally dissipated the defendant's assets outside the ordinary course of business for the purpose of evading payment of the judgment.

Kansas

Kan. Stat. Ann. § 60-2103

Provides that if the appellant proves by a preponderance of the evidence that setting the supersedeas bond at the full amount of the judgment will result in the appellant suffering an undue hardship or a denial of the right to appeal, the court may reduce the amount of the bond as follows: (1) if the judgment is less than or equal to $1 million, the supersedeas bond shall be set at the full amount of the judgment; or (2) if the judgment exceeds $1 million in value, the supersedeas bond shall be set at a total of $1 million plus 25 percent of any amount in excess of $1 million.

Kentucky

Ky. Rev. Stat. § 411.187

Limits the amount of appeal bond to $100 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may require bond be posted in an amount equal to the full judgment.

Louisiana

La. Code Civ. Proc. 2124

When the amount of judgment exceeds $150 million, trial court may set appeal bond sufficient to protect the plaintiff, while also preserving the ability to appeal.

Michigan

Mich. Comp. Laws § 600.2607

Limits the amount of appeal bond to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

Minnesota

Minn. Stat. § 550.36

The total appeal bond that is required of all appellants must not exceed $150,000,000, regardless of the value of the judgment.

Mississippi

Imposed by the Mississippi Supreme Court in 2001.
Tatum v. Barrentine, 797 So. 2d 223 (2001 Miss.)
Miss. R. App. Proc. 8

Limits the amount of appeal bond for large damage cases to $100 million.
Applicable only to large punitive damage awards.

Missouri

Mo. Rev. Stat. § 512.099

The total appeal bond or equivalent surety that is required of all appellants collectively shall not exceed fifty million dollars, regardless of the value of the judgment.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

Montana

Nebraska

Neb. Rev. Stat. § 25-1916

Limits the amount a defendant can be required to pay to secure the right to appeal to the lesser of the amount of the judgment, 50 percent of the appellant's net worth, or $50 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

North Carolina

N. C. Gen. Stat. § 1-289

Limits the amount of appeal bond to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

North Dakota

N.D. Cent. Code § 28-21-25

Limits the amount a defendant can be required to pay to secure the right to appeal to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

Ohio

Ohio Rev. Code Ann. § 2505.09

Limits the amount of appeal bond to $50 million.

Oklahoma

Okla. Stat. tit. 12, § 15-990.4

The bond shall be double the amount of the judgment. On a showing by the judgment debtor that the judgment debtor is likely to suffer substantial economic harm if required to post bond in the amount required by this paragraph, the court shall balance the likely substantial economic harm to the judgment debtor with the ability of the judgment creditor to collect the judgment in the event the judgment is affirmed on appeal and may lower the bond accordingly.

South Dakota

S.D. Codified Laws § 15-26A-26

The amount of the bond required may not exceed $25 million dollars regardless of the amount of judgment.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the limits described herein shall not apply.

Tennessee

Tenn. Code Ann. § 27-1-124

Limits the amount of appeal bond to $75 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may enter orders to protect the appellee and require bond be posted in an amount equal to the full judgment

Texas

Tex. Civ. Prac. & Rem. Code Ann. § 52.006

Limits the amount of appeal bond to the lesser of 50% of the judgment debtor's net worth or $25 million. On a showing by the judgment debtor that the judgment debtor is likely to suffer substantial economic harm if required to post security in an amount required), the trial court shall lower the amount of the security to an amount that will not cause the judgment debtor substantial economic harm.

Trial court is not prevented from enjoining the judgment debtor from dissipating or transferring assets to avoid satisfaction of the judgment, but trial court may not interfere with the judgment debtor's use, transfer, conveyance, or dissipation of assets in the normal course of business.

Utah

Utah R. Civ. Proc. 62

A court shall set the supersedeas bond in an amount that adequately protects the judgment creditor against loss or damage occasioned by the appeal and assures payment in the event the judgment is affirmed. The presumptive amount of a bond for compensatory damages is the amount of the compensatory damages plus costs and attorney fees, as applicable, plus 3 years of interest at the applicable interest rate.

There is a $25 million limit for compensatory damages, applied to class actions and actions involving multiple plaintiffs where damages are not proved for each plaintiff individually. There is no bond requirement for appealing a punitive damage award.

Virginia

Va. Code Ann. § 8.01-676.1:

Limits amount of appeal bond to $25 million.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may enter orders to protect the appellee and require bond be posted in an amount equal to the full judgment.

West Virginia

W. Va. Code § 58-5-14

Limits amount of appeal bond to $50 million for all verdicts returned after July 1, 2007.

If it is proven that the party posting bond is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment the court may enter orders to protect the appellee and require bond be posted in an amount equal to the full judgment.

Wisconsin

Wis. Stat. § 808.07

Limits the amount a defendant can be required to pay to secure the right to appeal to $100 million.

Wyoming

Wyo. Stat. Ann. § 1-17-201

Limits the amount a defendant can be required to pay to secure the right to appeal to $25 million. For small businesses, defined as having 50 or fewer employees, limits the amount to secure the right to appeal to $2 million.