The authority
Unless the law or these rules provide otherwise, a judgment debtor may supersede the judgment by filing with the trial court clerk a written agreement with the judgment creditor for suspending enforcement of the judgment; filing with the trial court clerk a good and sufficient bond; making a deposit with the trial court clerk in lieu of a bond; or providing alternate security ordered by the court.Tex. R. App. P. 24.1(a)
Tex. R. App. P. 24; Tex. Civ. Prac. & Rem. Code § 52.006
When it applies
A business or owner with a judgment against it that it intends to appeal, especially where the creditor has already begun to abstract, garnish or seek a receiver. Without supersedeas, an appeal does not stop collection.
How it is proved up
- Decide early. A notice of appeal alone does not suspend enforcement, and a creditor can execute in the meantime.
- Compute the amount: compensatory damages, interest for the estimated duration of the appeal, and costs.
- Where the amount would cause substantial economic harm, move to lower it, and support the net-worth cap with an affidavit of net worth.
- Choose the form of security: a surety bond, a cash deposit, or alternate security the court orders.
- Ask the court of appeals to review the trial court's ruling on the amount if it is wrong.
What defeats it
- Waiting until the creditor has already executed or garnished.
- A net-worth affidavit that is not supported by evidence.
- Posting security for less than the judgment requires without a court order reducing it.
Where I have used it
Post-judgment work on both sides: superseding judgments for debtors who appeal, and collecting for creditors when no bond is posted, as in Murphy v. Liberty Hill Construction.
Questions
Does filing an appeal stop a judgment from being collected in Texas?
No. Enforcement is suspended only if the judgment is superseded, by agreement, bond, deposit or court-ordered alternate security.
How much is a supersedeas bond in Texas?
For a money judgment, the compensatory damages awarded, interest for the estimated duration of the appeal, and costs, but not more than the lesser of 50 percent of the debtor's net worth or $25 million. The court may lower it on a showing that the full amount would cause the debtor substantial economic harm.
What happens if no supersedeas bond is posted?
The judgment creditor may enforce the judgment while the appeal is pending, by abstract, execution, garnishment or turnover.