In November 2011, I posted about whether attorney fees must be superseded to stay execution of a judgment pending appeal. Today, in In re Nalle Plastics Family Limited Partnership (No. 11-0903), the Texas Supreme Court resolved a split among the intermediate courts of appeals and answered the question, “No.”
Let me set the stage a little. With some exceptions, filing a notice of appeal does not prevent a judgment from being enforced. Before 2003, an appellant seeking to supersede a money judgment had to post security in “at least the amount of the judgment, interest for the estimated duration of the appeal, and costs.” House Bill 4, the infamous tort-reform package, altered the security required by substituting “the amount of compensatory damages awarded in the judgment” for “the amount of the judgment.” So, for a money judgment, the appellant must now post security equaling the sum of compensatory damages awarded in the judgment, interest for the estimated duration of the appeal, and costs. Tex. Civ. Prac. & Rem. Code § 52.006; TRAP 24.2(a)(1).
Under the old rule, “the amount of the judgment” included not only actual or compensatory damages, but also any punitive or additional damages authorized by law. Commentators generally agreed that HB4 removed these sorts of “noncompensatory” damages from what must be secured, making it easier for defendants to suspend money judgments on appeal as the Legislature intended. But questions arose about whether a judgment debtor needed to supersede attorney fees and other matters making up “the amount of the judgment,” yet arguably outside HB4’s “compensatory damages” standard. A split developed among the intermediate courts on whether attorney fees must be included in the amount of security a judgment debtor must post to prevent execution on the judgment pending appeal. Continue Reading




