summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
2010-2011 Regular Session
Bill Summary
Under current law and the Rules of Court, a defendant who appeals a judgment ordering the payment of a monetary amount to the plaintiff may appeal that judgment and receive a temporary stay of the obligation to pay the monies, conditioned on posting an appeal bond. The appeal bond, also known as a supersedeas bond, is conditioned for the satisfaction of the judgment in full, together with interest and trial costs. This bill would limit the total amount of the appeal bond or other forms of security required of all appellants collectively in a civil action to the lesser of: (1) the total value of the monetary judgment, or (2) $50,000,000, in addition to trial costs. The bill also provides that it shall not be construed to eliminate the discretion of the court, after notice and hearing and for good cause shown, to reduce the appeal bond to a lower amount. The bill provides that if an appellee proves by a preponderance of the evidence that an appellant is concealing its assets, or is dissipating or diverting assets outside the ordinary course of business to avoid payment of a judgment, a court may enter orders that: (1) are necessary to protect the appellee; and (2) require the appellant to post a supersedeas bond in an amount up to the total amount of the judgment. The bill provides that the phrase "dissipating or diverting assets" does not include expenditures, including incentive or other payments to the owners of a business, of a kind that the appellant made in the regular course of business prior to entry of the judgment being appealed. The bill defines "civil action" as all cases involving individual, aggregated, class action, or otherwise joined claims, and defines "legal, equitable, or other relief" as all forms of relief, including compensatory, special, punitive, exemplary or other damages; injunctive relief; or any other form of relief. The bill would apply to all judgments entered on or after the effective date, regardless of the date the action was filed.
AI Summary
This bill establishes a cap on the amount of an appeal bond, also known as a supersedeas bond, which is a guarantee posted by a defendant appealing a monetary judgment to ensure payment if the appeal fails. Under this bill, the total appeal bond required from all parties appealing collectively in a civil action will be limited to $50 million, or the total value of the monetary judgment if that is less, in addition to trial costs. However, courts retain the discretion to reduce this bond amount for good cause shown. The bill also clarifies that if a party appealing is found to be hiding or improperly moving assets to avoid paying a judgment, the court can order a bond up to the full judgment amount to protect the winning party, with certain exceptions for normal business expenditures. The bill defines "civil action" broadly to include various types of lawsuits and "legal, equitable, or other relief" to encompass all forms of damages and remedies, and it applies to judgments entered on or after its effective date.
Committee Categories
Justice
Sponsors (4)
Last Action
Assembly Floor Amendment Passed (Scalera) (on 09/30/2010)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location | Created |
|---|---|---|
| Reprint | https://www.njleg.state.nj.us/2010/Bills/A2500/2473_R1.HTM | 05/29/2012 |
| Bill | https://www.njleg.state.nj.us/2010/Bills/A2500/2473_I1.HTM | 05/28/2012 |
| Fiscal Note 8/26/10; as introduced | https://www.njleg.state.nj.us/2010/Bills/A2500/2473_F1.HTM | 04/23/2012 |
| Statement AAP 6/17/10 | https://www.njleg.state.nj.us/2010/Bills/A2500/2473_S1.HTM | 04/23/2012 |
| Floor Statement Assembly 9/30/10 | https://www.njleg.state.nj.us/2010/Bills/A2500/2473_S2.HTM | 04/23/2012 |
Loading...