Appellate Insights

Some judgments are automatically stayed pending appeal, but many are not.  If your client is facing an adverse judgment, it’s important to know which category the judgment falls into and what additional steps might be necessary to prevent enforcement while the appeal proceeds.

• The default rule (by statute) is that judgments are stayed pending appeal.  But there are many exceptions to that rule that warrant close study.
• One of the exceptions is large enough to swallow the rule:  Money judgments are not automatically stayed – the defendant/appellant must post an undertaking to prevent enforcement while the appeal is pending.
• The trial court has discretion to require an undertaking where the court found that appellant possesses the respondent’s money or other property.
• If the appellant needs time to prepare its undertaking, the trial court has discretion to stay enforcement of the judgment for up to 10 days after the last date for filing a notice of appeal.

►  The practical message: Before a judgment is entered against your client, know when it would become enforceable and what steps might be necessary to stave off enforcement pending appeal.