Senate Bill sb2250c1
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Florida Senate - 2006 CS for SB 2250
By the Committee on Judiciary; and Senator Webster
590-2479-06
1 A bill to be entitled
2 An act relating to supersedeas bond; creating
3 s. 768.734, F.S.; limiting the amount of
4 supersedeas bond required for certain
5 appellants; providing that a party may move the
6 court to reduce the supersedeas bond; providing
7 an exception to limits if an appellant engages
8 in certain conduct for the purpose of avoiding
9 payment of the judgment; providing an effective
10 date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Section 768.734, Florida Statutes, is
15 created to read:
16 768.734 Limitations on supersedeas bond; exception.--
17 (1) Except for certified class actions subject to s.
18 768.733, in any civil action brought under any legal theory,
19 the amount of a supersedeas bond necessary to obtain an
20 automatic stay of execution of a judgment granting any type of
21 relief during the entire course of all appeals or
22 discretionary reviews, may not exceed $50 million for each
23 appellant, regardless of the amount of the judgment appealed.
24 The $50-million figure shall be adjusted annually to reflect
25 changes in the Consumer Price Index.
26 (2) In any civil action brought under any legal
27 authority theory, a party seeking a stay of execution pending
28 review of a judgment of any amount may move the court to
29 reduce the amount of a supersedeas bond required to obtain
30 such a stay. The court, in the interest of justice and for
31 good cause shown, may reduce the supersedeas bond or may set
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 CS for SB 2250
590-2479-06
1 other conditions for the stay with or without a bond. The
2 court may not reduce the supersedeas bond if the appellant has
3 an insurance or indemnification policy applicable to the case.
4 This subsection does not apply to certified class actions
5 subject to s. 768.733.
6 (3) If an appellant has posted a supersedeas bond for
7 an amount less than that which would be required for an
8 automatic stay pursuant to Rule 9.310(b)(1), Florida Rules of
9 Appellate Procedure, the appellee may engage in discovery for
10 the limited purpose of determining whether the appellant has
11 dissipated or diverted assets outside the course of its
12 ordinary business or is in the process of doing so.
13 (4) If the trial or appellate court determines that an
14 appellant has dissipated or diverted assets outside the course
15 of its ordinary business or is in the process of doing so, the
16 court may enter orders necessary to protect the appellee,
17 require the appellant to post a supersedeas bond in an amount
18 up to, but not more than, the amount that would be required
19 for an automatic stay pursuant to Rule 9.310(b)(1), Florida
20 Rules of Appellate Procedure, and impose other remedies and
21 sanctions as the court deems appropriate.
22 Section 2. This act shall take effect July 1, 2006.
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Florida Senate - 2006 CS for SB 2250
590-2479-06
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2250
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4 Increases the maximum amount of a supersedeas bond necessary
to stay execution pending review of a judgment from $25
5 million for all appellants in the aggregate to $50 million for
each appellant.
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Deletes the provision requiring a lower maximum amount for a
7 supersedeas bond if the appellant is an individual or
independently owned and operated business with 400 or fewer
8 employees.
9 Permits the court to reduce the amount of the bond or to set
other conditions for the stay with or without bond in certain
10 circumstances.
11 Authorizes limited discovery for the purpose of determining
whether an appellant has dissipated or diverted assets outside
12 the course of its ordinary business or is in the process of
doing so if the amount of the supersedeas bond posted is less
13 than that which would be required under Rule 9.310(b)(1),
Florida Rules of Appellate Procedure.
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Expands the remedies available to the court if the court
15 determines that an appellant has dissipated or diverted assets
outside the course of its ordinary business or is in the
16 process of doing so to permit the court to impose other
remedies and sanctions as the court deems appropriate.
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