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Class Objector’s Bond Was Excessive

Posted in Opinions & Judgments

In Vaughn v. American Honda Motor Co. (No. 07-41056), the Fifth Circuit has held that the district court’s decision to require any objector to a class action settlement to post a $150,000 bond for costs on appeal was an abuse of discretion.  Concluding that the district court could not use FRAPs 7 and 38 to effectively bar an appeal, the circuit court reduced the bond amount to $1,000.