Article

Topics: Use, Supersedeas Bonds

Note: When Amy Walls (Plaintiff) was awarded a US $2,398,000 judgment in her action against Miracorp, Inc. and Lane Goebels (Defendants) for discrimination and battery, Defendants moved to stay enforcement of the judgment pending resolution of post-trial motions. Defendants asked that the court "grant the stay without requiring either defendant to post a bond and instead, allow them to post an irrevocable letter of credit...payable to [P]laintiff and her attorneys in the amount of [P]laintiff's judgment plus ten percent." The U.S. District Court for the District of Kansas, Robinson, J., granted the motion with qualifications.

Despite Plaintiff's objections that Defendants should provide a supersedeas bond or a LC in the amount of 125% of the judgment from "a federally insured financial institution that is adequately capitalized and stable to fund the letter of credit at the appropriate time" and containing "adequate terms and conditions with regard to when the issuing party shall pay to [P]laintiff the amount due", the Judge ruled that "an irrevocable letter of credit in the amount of $2,637,800 is adequate (110% of the judgment), provided that it is first presented to the Court for approval of the terms and conditions upon which the letter of credit will pay." The Judge noted that U.S. Federal Rule of Civil Procedure 62(d) gave the court discretion to impose "adequate terms" in granting a stay of execution but that those terms need not include a supersedeas bond. The Judge noted that the amount of security that is adequate is less for a period in which post-trial motions are to be resolved than in an appeal which is generally longer.

[JEB/pbl]

COPYRIGHT OF THE INSTITUTE OF INTERNATIONAL BANKING LAW & PRACTICE

The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.