Appeal Bond Reform

Problem

In an era when billion-dollar verdicts are no longer uncommon, appealing a jury verdict can force an individual, a company, or an industry into bankruptcy.

ATRA's Position:

ATRA supports appeal bond reform legislation that limits the size of an appeal bond when a company is not liquidating its assets or attempting to flee from justice.


Opposition Opinion:

The personal injury bar’s argument in support of appeal bonds – that appeal bonds secure damages awards owed to a plaintiff – fails to address the hardship imposed by the bonds on defendants who are forced to choose between risking bankruptcy by posting billion-dollar bonds, many of which are ultimately overturned by an appellate court, and forfeiting their right to appeal.

Limits on Appeal Bond: S.B. 199 (2018)

Kansas|2018

The bill limits the amount a defendant would have to

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The bill limits the amount a defendant would have to pay to appeal a decision in civil litigation to $25 million.  It also creates a rebuttable presumption that an appellant will suffer an undue hardship when the judgment amount exceeds $2.5 million, the defendant is a small business, and judgment is for a claim arising from activities within the appellant’s ordinary course of business.  For these purposes, “small business” would be defined as a sole proprietorship, partnership, limited liability company, corporation, or other business entity, whether for-profit or not-for-profit, with between 2 and 50 employees that is not a corporate affiliate or subsidiary of, or owned in whole or in part by any other business.


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Unchallenged

Appeal Bond Reform: HB 2457 (2005); Amended K.S.A. § 60-2103

Kansas|2005

Provides that if the appellant proves by a preponderance of

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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.


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Unchallenged

Appeal Bond Reform: SB 64 (2003)

Kansas|2003

Limits the amount that signatories to the Master Settlement Agreement

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Limits the amount that signatories to the Master Settlement Agreement are required to pay to secure the right to appeal to $25 million.


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Unchallenged