Appeal Bond Waiver Act

Model Legislation

Section 1. {Appeal Bond Waived}

(A)    In any civil action in which a plaintiff obtains a judgment, the state supersedeas bond requirements shall be waived as to that portion of the judgment that exceeds $1,000,000 if the party or parties found liable seek a stay of enforcement of the judgment during the appeal.

(B)     If the party seeking the appeal is a small business organized and doing business under the laws of this state, the state supersedeas bond requirements shall be waived as to that portion of the judgment that exceeds $100,000 while any appeals are pending. A small business is

[states should select one of the following alternatives:

(1) A business that has 50 or fewer employees and annual revenues of $5,000,000 or less.

(2) Cite to definition under other section of state law or draft new definition.]

(C)  If plaintiff proves by a preponderance of the evidence that a party bringing an appeal, for whom the supersedeas bond requirement has been waived, is purposefully dissipating its assets or diverting assets outside the jurisdiction of the United States courts, waiver shall be rescinded and the bond requirement shall be reinstated for the full amount of the judgment.

(D) A court may otherwise waive the filing of a supersedeas bond in a civil action for good cause shown.

Section 2. {Effective Date}

This Act shall take effect on its date of enactment and shall apply to any action which has not yet begun or which is pending on the date of enactment of this Act.

Approved by ALEC Board of Directors on December 1999.

Reapproved by ALEC Board of Directors on January 28, 2013.

Keyword Tags: Appeal Bond

Task Forces