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: SB 2198 (2009)

Florida|2009

Limits the amount a defendant can be required to pay

[…]

Limits the amount a defendant can be required to pay to secure the right to appeal to $200 million.  The limit applies to Engle progeny litigation, and creates an overall appeal bond cap for all of these cases combined.  The entities covered by the statute include signatories to the Master Settlement Agreement, successors, and affiliates.


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Unchallenged