SB1705 97TH GENERAL ASSEMBLY

LRB097 07920 AJO 48035 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1705

Introduced 2/9/2011, by Sen. Matt Murphy

SYNOPSIS AS INTRODUCED:

735 ILCS 5/2-1306 new
735 ILCS 5/2-1307 new

Amends the Code of Civil Procedure. Provides that a court may stay the execution on a money judgment, if the judgment debtor furnishes the judgment creditor with the required amount of security. Provides that the required amount of security is the lesser of: the sum of the judgment, interest pending appeal, and costs; 25% of the judgment debtor's net worth; or $25 million. Provides that a court may lower the required amount of security if a judgment debtor shows that the debtor is likely to sustain substantial economic harm if required to post the required security. Provides that a court may increase the required amount of security if a judgment creditor shows that a judgment debtor who obtained a stay is dissipating assets or diverting assets outside of the United States in other than the ordinary course of business. Provides that an appellate court may review the required amount of security, but may not increase it above the statutory limit. Provides that the new provisions apply to any action in which a money judgment is entered after the effective date. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by adding Sections 2-1306 and 2-1307 as follows:

(735 ILCS 5/2-1306 new)

Sec. 2-1306. Stay of money judgments pending appeal. If a judgment debtor requests that the trial court enter a stay of execution upon a money judgment and demonstrates to the court that an appeal from the judgment is pending or will be taken or that the time for taking an appeal has not expired, and that security for the satisfaction of the money judgment computed in accordance with Section 2-1307 has been furnished by the judgment debtor, then the court shall stay enforcement of the money judgment until the appeal is concluded, the time for appeal expires with no appeal taken, or the stay of execution expires or is vacated.

This Section applies to any action in which a money judgment is entered after the effective date of this Section.

(735 ILCS 5/2-1307 new)

Sec. 2-1307. Amount of security for appeal of a money judgment.

(a) Security for satisfaction of a money judgment posted by a judgment debtor seeking a stay of execution of the money judgment pending appeal shall equal the lesser of:

(1) the sum of

(i) the amount of compensatory damages awarded in the judgment;

(ii) interest at the statutory post-judgment rate for the estimated duration of the appeal; and

(iii) the costs awarded in the judgment;

(2) 25% of the judgment debtor's net worth; or

(3) $25 million.

(b) Subject to subsection (c), upon a showing by the judgment debtor that the judgment debtor is likely to suffer substantial economic harm if required to post security in an amount required under subsection (a), the trial court shall lower the amount of the security to an amount that will not cause the judgment debtor substantial economic harm.

(c) Notwithstanding the provisions of subsections (a) and (b), if a judgment creditor proves by a preponderance of the evidence that a judgment debtor prosecuting an appeal of a money judgment upon which execution has been stayed is purposefully dissipating its assets or diverting assets outside the jurisdiction of the United States courts in other than the ordinary course of business, the trial court may increase the amount of security required to be deposited by the judgment debtor in order to protect satisfaction of the judgment, but in no event shall the amount of the security required exceed an amount calculated in accordance with paragraph (1) of subsection (a).

(d) An appellate court may review the amount of security required by the trial court under this Section, except that when a judgment is for money, the appellate court may not modify the amount of security to exceed the amount allowed under this Section.

(e) This Section applies to any action in which a money judgment is entered after the effective date of this Section.

Section 99. Effective date. This Act takes effect upon becoming law.