Appeal Bond Waiver Act Exposed

The Appeal Bond Waiver Act was adopted by ALEC's Civil Justice Task Force at the States and Nation Policy Summit on December 10, 1999, amended at the Spring Task Force Summit April 13, 2002, amended at the States and Nation Policy Summit December, 2005, approved by the full ALEC Board of Directors January, 2006. According to ALEC.org, the Act was initially approved by the Board of Directors in December, 1999, re-approved on January 28, 2013. (Accessed on 2/18/2016).

CMD's Bill Summary

This "model" bill would make it easier for corporations to get a waiver from posting a sufficient bond to help cover a judgement aganst them while they are appealing a decision finding them at fault. It thus makes it easier to divert assests following a court decison that finds them a fault for the injury or death of an American.

ALEC Bill Text

Section 1. Appeal Bond Waived

(a) In any civil action in which a plaintiff obtains a judgment, the state supersedeas bond requirements shall be waived as to that portion of the judgment that exceeds $25,000,000 $1,000,000 if the party or parties found liable seek a stay of enforcement of the judgment during the appeal.

(b) If the party seeking the appeal is a small business, the state supersedeas bond requirements shall be waived as to that portion of the judgment that exceeds $1,000,000 $100,000 while any appeals are pending. A small business is [states should select one of the following alternatives]

• Alternative 1: a business that has 50 or fewer employees and annual revenues of $5,000,000 or less.

• Alternative 2: cite to definition under other section of state law or draft new definition.

(c) If a plaintiff proves by a preponderance of the evidence that a party bringing an appeal, for whom the supersedeas bond requirement has been waived, is purposefully dissipating its assets or diverting assets outside the jurisdiction of the United States courts waiver shall be rescinded and the bond requirement that would otherwise apply shall be reinstated.

(d) A court may otherwise waive the filing of a supersedeas bond in a civil action for good cause shown.

Section 2. Effective Date.

This Act shall take effect on its date of enactment and shall apply to any action which has not yet begun or which is pending on the date of enactment of this Act.

Adopted by ALEC's Civil Justice Task Force at the States and Nation Policy Summit December 10, 1999; amended at the Spring Task Force Summit April 13, 2002; amended at the States and Nation Policy Summit, December 2005.

Approved by full ALEC Board of Directors, January, 2006.