Documentary Credit World

Topics: Letter of Credit; Stay of Execution; Supersedeas Bond

Note: Following defeat at trial, North Platte Court LLC (Judgment Debtor) filed a motion requesting approval as supersedeas a USD 900,000 letter of credit issued by Pinnacle Bank (Issuer) in favor of Katrina Beran (Judgment Creditor). The motion also requested a further temporary stay of execution of judgment pending appeal or, alternatively, absent an appeal by Judgment Debtor, stay of execution until expiration of Judgment Debtor ’s time to file a notice of appeal. Although Judgment Creditor initially opposed the motion, the opposition was withdrawn once the parties agreed on LC terms.

The U.S. District Court for the District of Nebraska, Buescher, J., granted the motion, approving the LC as supersedeas for the case. Upon posting the LC, “execution of Judgment will be stayed without further order of the Court pending any appeal [Judgment Debtor] may take after the Court rules on [Judgment Debtor]’s post-trial motions”; if Judgment Debtor does not pursue an appeal, execution will be stayed until expiration of time to file the appeal notice.

[MJK]

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