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.

Appeal Bond Reform: HB 1603 (2009)

Oklahoma|2009

Limits the amount a defendant can be required to pay

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Limits the amount a defendant can be required to pay to secure the right to appeal to $25 million.  Eliminates bonding requirement to appeal a punitive damages judgment.


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Challenged and Struck Down

Held unconstitutional by the Oklahoma Supreme Court in Douglas v. Cox Retirement Properties, June 2013.

Appeal Bond Reform: HB 2661 (2004)

Oklahoma|2004

The court is given discretion to lower the bond if

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The court is given discretion to lower the bond if the judgment debtor can show that it is likely to suffer substantial economic harm if required to post a bond in the amount required by statute (which is double the judgment).  Applies to all cases except those involving signatories to the Master Settlement Agreement.


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Unchallenged

Appeal Bond Reform: SB 372 (2001)

Oklahoma|2001

Limits the amount a signatory to the Master Settlement Agreement

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Limits the amount a signatory to the Master Settlement Agreement can be required to pay to secure the right to appeal to $25 million.


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Unchallenged