FORT LAUDERDALE BUSINESS LITIGATION: STAYING EXECUTION OF A JUDGMENT

The trial is over and the jury rendered its verdict awarding money damages to the plaintiff. The Court entered a final judgment based on the jury’s verdict as a result. Now what? The Fort Lauderdale business litigation attorneys of the Mavrick Law Firm represent businesses and their owners in breach of contract litigation and related claims of fraud, non-compete agreement litigation, trade secret litigation, trademark infringement litigation, employment litigation, and other legal disputes in federal and state courts and in arbitration.

The prevailing party is now a judgement creditor and will likely begin collection proceedings against the judgment debtor by issuing discovery in aid of execution and various writs. The discovery is designed to locate assets belonging to the judgment debtor that can potentially satisfy the judgment amount. The writs are intended to seize the judgment debtor’s assets in satisfaction of the judgment amount. To avoid collection proceedings, a judgment debtor can seek a stay of execution on the judgment if he or she appeals the final judgment. The motion must explain the facts and circumstances supporting a stay. Fla. R. App. P. 9.310 (A “party seeking to stay a final or nonfinal order pending review first must file a motion in the lower tribunal.”). The trial court has wide discretion when deciding to grant or deny the motion for stay.

A judgment debtor can also post a bond to stop execution of the judgment if the judgment is solely for the payment of money damages. Fla. R. App. P. 9.310 (“If the order is a judgment solely for the payment of money, a party may obtain an automatic stay of execution pending review, without the necessity of a motion or order, by posting a good and sufficient bond.”). Posting a bond avoids the trial court’s discretion while ensuring a stay of execution. A non-discretionary stay is conditioned on posting a bond is to ensure the judgment creditor will be paid the full amount of the judgment if the judgment debtor does not prevail on his appeal. Fodor v. Geiszler, 958 So. 2d 446 (Fla. 2d DCA 2007) (The “purpose of conditioning a stay pending review on posting a bond is to ensure the payment to judgment creditor of the full amount of the order on appeal, including interest, the event the appeal is unsuccessful.”). Once the appeal ends and a mandate is issued in favor of the judgment creditor, the judgment creditor has the option to execute on the judgment through discovery and writs or proceed against the supersedeas bond.” Superior Garlic Int’l, Inc. v. E & A Produce Corp., 934 So. 2d 484 (Fla. 3d DCA 2004).

The utility of a bond usually expires at the end of an appeal because (1) the judgment debtor prevails in the appeal nullifying the final judgment or (2) the judgment creditor prevails in the appeal and executes against the bond to satisfy its judgment. However, in rare circumstances, the bond can have additional utility for a judgment creditor that prevails on appeal. If the judgment debtor loses the appeal and satisfies the judgment with his or her own funds, the judgment creditor might be able use the bond to satisfy its attorney’s fees (assuming such fees are permitted in the lawsuit). To do this, the bond must expressly allow for the recovery of attorney’s fees. City of Coral Gables v. Geary, 398 So. 2d 479 (Fla. 1981). In such cases, the judgment creditor can prevent discharge of a bond to secure its own attorney’s fees. Capital Bank v. MVB, Inc., 683 So. 2d 1175 (Fla. 3d DCA 1996).

The Fort Lauderdale business litigation attorneys of the Mavrick Law Firm represent businesses and their owners in breach of contract litigation and related claims of fraud, non-compete agreement litigation, trade secret litigation, trademark infringement litigation, employment litigation, and other legal disputes in federal and state courts and in arbitration.