South Carolina General Assembly
116th Session, 2005-2006

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H. 4363

STATUS INFORMATION

General Bill
Sponsors: Reps. Cato, Cooper, Bailey and Battle
Document Path: l:\council\bills\ms\7038ahb06.doc

Introduced in the House on January 10, 2006
Currently residing in the House Committee on Judiciary

Summary: Supersedeas bond or other form of security is not required to obtain a stay of execution

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   12/7/2005  House   Prefiled
   12/7/2005  House   Referred to Committee on Judiciary
   1/10/2006  House   Introduced and read first time HJ-45
   1/10/2006  House   Referred to Committee on Judiciary HJ-45

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/7/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 18-9-130, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EFFECT OF NOTICE OF APPEAL ON THE EXECUTION OF A JUDGMENT, SO AS TO PROVIDE THAT A SUPERSEDEAS BOND OR OTHER FORM OF SECURITY IS NOT REQUIRED TO OBTAIN A STAY OF EXECUTION OF A JUDGMENT DURING A PENDING APPEAL EXCEPT UPON MOTION OF THE RESPONDENT, TO PROVIDE GUIDELINES FOR THE COURT TO FOLLOW WHEN DETERMINING THE AMOUNT OF A SUPERSEDEAS BOND OR OTHER FORM OF SECURITY AND A METHOD TO FIX A LESSER AMOUNT RATHER THAN THE ENTIRE AMOUNT OF THE JUDGMENT AND OTHER COSTS WHEN THE COURT FINDS THE APPELLANT IS LIKELY TO SUFFER SUBSTANTIAL ECONOMIC HARM, AND TO PROVIDE SAFEGUARDS WHEN AN APPELLANT IS REQUIRED TO PROVIDE THE COURT WITH DOCUMENTS OR INFORMATION WHICH THE APPELLANT BELIEVES IN GOOD FAITH ARE CONFIDENTIAL OR WOULD BE POTENTIALLY DAMAGING TO HIS BUSINESS IF DISCLOSED TO THE PUBLIC, COMPETITORS, OR CUSTOMERS IN CONNECTION WITH THE COURT'S DETERMINATION OF THE APPELLANT'S NET WORTH.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 18-9-130 of the 1976 Code, as last amended by Act 216 of 2004, is further amended to read:

"Section 18-9-130.    (A)(1)    A notice of appeal from a judgment directing the payment of money does not stay the execution of the judgment unless the presiding judge before whom the judgment was obtained grants a stay of execution serves as supersedeas upon payment of all costs in the trial court by the appellant, and it is not necessary that a supersedeas bond or other form of security be filed to obtain a stay of execution of the judgment during the pendency of the appeal; provided, however, that upon motion by the respondent and subject to the provisions of subsection (B), the court shall require that supersedeas bond or other form of security be given with surety and in an amount to cover the entire amount of the judgment remaining unsatisfied, costs on the appeal, interest, and damages for delay, unless the court, after notice and hearing and for good cause shown, fixes a lesser amount.

(B)    Notwithstanding the provisions of subsection (A), in a civil action pursuant to a valid legal theory, the amount of supersedeas bond or other form of security to be furnished during the pendency of all appeals or discretionary reviews of a judgment in order to stay execution of the judgment during the entire course of appellate review by a court, may not exceed:

(1)    fifty percent of the appellant's net worth; or

(2)    ten million dollars.

(C)    Upon a finding by the court that the appellant is likely to suffer substantial economic harm if required to post security in an amount required pursuant to subsection (A) or (B), the court may reduce the amount of the supersedeas bond or other form of security to an amount that will not cause the appellant substantial economic harm.

(D)    If a respondent proves by a preponderance of the evidence that a party bringing an appeal, for whom the supersedeas bond or other form of security has been limited pursuant to subsection (B), is dissipating or secreting its assets, or diverting assets outside the ordinary course of business to avoid payment of a judgment, a court may require the appellant to post a bond or other form of security in an amount not to exceed the total amount of the judgment.

(E)    If, for purposes of determining an appellant's net worth pursuant to subsection (B)(1), the court requires an appellant to provide documents of information, which the appellant in good faith believes:

(1)    embodies confidential research, development, financial, commercial, personnel, or personal information; or

(2)    would be potentially damaging to the appellant's business if disclosed to the public or the appellant's competitors, potential competitors, customers, or potential customers, then the appellant is entitled to a protective order from the court to prevent the disclosure of this information or documents to a person or entity other than the court and the parties to the pending appeal, and to ensure that this information or documents are used only in connection with the determination of the appellant's net worth pursuant to subsection (B)(1).

(F)(2)    A plaintiff may not enforce a sale of property after a notice of appeal is filed without giving an undertaking or bond to the defendant, with two good sureties, in double the appraised value of the property or double the amount of the judgment, conditioned to pay all damages the defendant may sustain by reason of the sale in case the judgment is reversed. The plaintiff in such a this case may not proceed with a sale of defendant's property if the defendant enters into an undertaking, with good sureties, in double the appraised value of the property or the amount of the judgment, to pay the judgment with legal interest and all costs and damages the plaintiff may sustain by reason of the appeal or to produce the property levied on and submit to the sale if the judgment is confirmed.

(B)(G)(1)    The appeal of a judgment awarding relief in a civil action, under any pursuant to a valid legal theory, involving a signatory of the Master Settlement Agreement, as defined in Section 11-47-20(e), or a successor to or affiliate of a signatory to the agreement, automatically stays the execution of that judgment.

(2)    The stay described in this subsection is effective upon the filing of the notice of appeal and during the entire course of appellate review of the judgment."

SECTION    2.    This act takes effect upon approval by the Governor.

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