Earlier this year, a trial court in Indiana ordered IBM to post a $25 million appeal bond staying execution of a $78 million judgment. The litigation arose from IBM’s breach of a contract requiring it to automate much of Indiana’s welfare services. The amounts of both the judgment and appeal bond are perhaps extraordinary. Still, the IBM case highlights lessons for attorneys requesting stays in more commonplace civil cases.
This Article begins by explaining why a party would need to request an appeal bond and the requirements for doing so. It then addresses how courts determine the amount to fix for such a bond. It concludes by offering some practical considerations for both defendants (judgment-debtors) and plaintiffs (judgment-creditors).More