Obtaining an appellate bond or depositing cash to stay execution of judgment is not always as simple as it sounds. Depending on the size of the undertaking, an appellant may be forced to borrow money to fund the undertaking or a letter of credit covering the required amount. Such a loan is rarely interest free and the interest can be quite significant, building over the two or three years while an appeal is pending. Court rules and case law establish that the cost of providing security for a judgment on appeal is recoverable if a reversal is obtained. But what fits within the definition of "cost"? Does it include the interest on money borrowed to pay for the security? The answer, after a recent decision from the 1st District Court of Appeal, is not so clear.
A version of this article appeared in the Daily Journal on June 9, 2010.
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