00 SENATE BILL NO. 48 01 "An Act amending Rule 62, Alaska Rules of Civil Procedure, to limit the amount of the 02 bond required to stay execution of a judgment in a civil litigation during an appeal or 03 review; and amending Rules 204 and 205, Alaska Rules of Appellate Procedure, to limit 04 the amount of the bond required to stay execution of a judgment in a civil litigation 05 during an appeal." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 DIRECT COURT RULE AMENDMENT. Rule 62(d), Alaska Rules of Civil 10 Procedure, is amended to read: 11 (d) Stay Upon Appeal or Proceedings for Review. When an appeal is taken 12 or review sought the appellant or petitioner by giving a supersedeas bond may obtain a 13 stay subject to the exceptions contained in subdivision (a) of this rule. The bond may 01 be given at or after the time of filing the notice of appeal or of filing the petition for 02 review, as the case may be. The amount of the bond required collectively of all 03 appellants may not exceed the lesser of $5,000,000 or 10 percent of all appellants' 04 net worth, regardless of the value of the judgment. The limitation on the amount 05 of the bond set out in this subdivision does not apply to awards resulting from the 06 injury, loss, or destruction of natural resources caused by an environmental 07 disaster. However, if an appellee proves by a preponderance of the evidence that 08 an appellant whose bond has been limited is dissipating assets outside of the 09 ordinary course of business to avoid payment of a judgment, the court may 10 require the appellant to post a bond in an amount up to the full amount of the 11 judgment. The stay is effective when the supersedeas bond is approved by the court. 12 In this subdivision, "environmental disaster" means a real and substantial threat 13 to the environment caused by the release of oil or other petroleum products or 14 hazardous substances from a facility or carrier. 15 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 DIRECT COURT RULE AMENDMENT. Rule 204(d), Alaska Rules of 18 Appellate Procedure, is amended to read: 19 (d) Supersedeas Bond. 20 (1) Whenever in a civil case an appellant entitled thereto desires a stay 21 on appeal, the appellant may present to the superior court for its approval a 22 supersedeas bond which shall have such surety or sureties as the court requires. The 23 bond shall be conditioned for the satisfaction of the judgment in full, together with 24 costs and interest, if for any reason the appeal is dismissed or if the judgment is 25 affirmed, and to satisfy in full such modification of the judgment and such costs and 26 interest as the supreme court may adjudge and award. 27 (2) When the judgment is for the recovery of money not otherwise 28 secured, the amount of the bond shall be fixed at such sum as will cover the whole 29 amount of the judgment remaining unsatisfied, costs on the appeal, and interest, unless 30 the superior court, after notice and hearing and for good cause shown, fixes a different 31 amount or orders security other than the bond. However, the amount of the bond 01 that is required collectively of all appellants may not exceed the lesser of 02 $5,000,000 or 10 percent of all appellants' net worth regardless of the value of the 03 judgment. This limitation does not apply to awards resulting from the injury, 04 loss, or destruction of natural resources caused by an environmental disaster. 05 However, if an appellee proves by a preponderance of the evidence that an 06 appellant is intentionally dissipating assets outside the ordinary course of 07 business to avoid payment of a judgment, the court may require the appellant to 08 post bond in an amount up to the full amount of the judgment. In this paragraph, 09 "environmental disaster" means a real and substantial threat to the environment 10 caused by the release of oil or other petroleum products or hazardous substances 11 from a facility or carrier. 12 (3) When the judgment determines the disposition of the property in 13 controversy as in real actions, replevin, and actions to foreclose mortgages or when 14 such property is in the custody of the court or the state troopers or when the proceeds 15 of such property of a bond for its value is in the custody or control of the court, the 16 amount of the supersedeas bond shall be fixed at such sum only as will secure the 17 amount recovered for the use and detention of the property, the cost of the action, 18 costs on appeal, and interest, unless the superior court, after notice and hearing and for 19 good cause shown, fixes a different amount or orders security other than the bond. 20 (4) A municipality or an officer or agent thereof desiring a stay on 21 appeal is exempted from the requirement of posting supersedeas bond imposed by this 22 subsection. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 DIRECT COURT RULE AMENDMENT. Rule 205, Alaska Rules of 26 Appellate Procedure, is amended to read: 27 Rule 205. Stays Pending Appeal in Civil Cases. (a) In a civil case, the 28 supreme court or a justice thereof may stay the enforcement or effect of the judgment 29 appealed from or the proceedings in the trial court upon such terms as to bond or other 30 matters as may be proper. The amount of the bond required collectively of all 31 appellants may not exceed the lesser of $5,000,000 or 10 percent of all appellants' 01 net worth, regardless of the value of the judgment. The limitation on the amount 02 of the bond set out in this subdivision does not apply to awards resulting from the 03 injury, loss, or destruction of natural resources caused by an environmental 04 disaster. However, if an appellee proves by a preponderance of the evidence that 05 an appellant whose bond has been limited is dissipating assets outside of the 06 ordinary course of business to avoid payment of a judgment, the court may 07 require the appellant to post a bond in an amount up to the full amount of the 08 judgment. In this subdivision, "environmental disaster" means a real and 09 substantial threat to the environment caused by the release of oil or other 10 petroleum products or hazardous substances from a facility or carrier. 11 (b) A motion for a stay will normally not be considered by the supreme court 12 unless application has previously been made to the trial court and has been denied, or 13 has been granted on conditions other than those requested. 14 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. This Act applies to cases pending on or filed on or after the date 17 this Act becomes law.