Today, I would like to discuss the execution of judgments and appeal bonds, or bonds used to stay the execution of a judgment. In federal court, this type of bond is called a supersedeas bond, and you generally have 30 “safe” days after the entry of a judgment. What that means is you have 30 days to line up a bond or obtain a stay through other means before the execution of the judgment, after which the judgment creditor will attempt to lien, seize, or sell assets that the judgment debtor has in their possession. In federal court, you have 30 days after the entry of the judgment before the judgment creditor can act.

In New York State Court and many other state courts, there are no “safe” days, which means that after the entry of a judgment, the judgment creditor can go ahead and execute it. I am bringing this up because there are a lot of news articles about whether Donald Trump will post an appeal bond and, if so, when he needs to post it. The bond is related to two different actions. One is in federal court, and the other is in state court. In the federal court matter, he has 30 days to post the bond after the entry of the judgment. In the state court action, after the entry of the judgment, he must post a bond immediately.

That is for the stay of the execution of the judgment and pending appeal. Not all appeals require a bond, and many go forward without one. That being said, there are a lot of questions about when Trump has to post the bond. In state court, he would have to post it immediately if there is a final judgment. If there is a decision or direct entry of a judgment, the decision, and the order cannot be executed, so he does not yet need a bond. He will need a bond once there is a final judgment.

I bring this up because it is a relevant topic in the news. Some people have had questions, and different reporters have contacted my office for information. It is certainly something to think about. If you are in state or federal court and a judgment is possibly going to be entered, you should start working on obtaining the bond so that you are not scrambling at the last minute to try and put the bond together. 

My name is Neil Pedersen. Feel free to call me to discuss your appellate or supersedeas bond needs.

Neil Pedersen
15 Maiden Lane Suite #800
New York, NY, 10038

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