Suspension of Enforcement of Judgment

Pending Appeal in Civil Cases 24.1. Suspension of Enforcement (a) Methods. Unless the law or these rules provide otherwise, a judgment debtor may supersede the judgment by: (1) filing with the trial court clerk a written agreement with the judgment creditor for the enforcement suspending judgment; of (2) filing with the trial court clerk a good and sufficient bond; (3) making a deposit with the trial court clerk in lieu of a bond; or (4) providing alternate security under Rule 24.2(e) or ordered by the court. (b) Bonds. (1) A bond must be: (A) in the amount required by 24.2; (B) payable to the judgment creditor; (C) signed by the judgment debtor or the debtor’s agent; (D) signed by a sufficient surety or sureties as obligors; and (E) conditioned as required by (d). (2) A bond is effective upon filing. On motion of any party, the trial court will review the bond. (c) Deposit in Lieu of Bond. (1) Types of Deposits. Instead of filing a surety bond, a party may deposit with the trial court clerk: (A) cash; (B) a cashier’s check payable to the clerk, drawn on any federally insured and federally or state- 28 been issued, the clerk will promptly issue a writ of supersedeas. 24.2. Amount of Bond, Deposit, or Security (a) Type of Judgment. (1) For Recovery of Money. When the judgment is for money, the amount of the bond, deposit, or security must equal the sum of compensatory damages awarded in the estimated duration of the appeal, and costs awarded in the judgment. But the amount must not exceed the lesser of: judgment, interest the for (A) 50 percent of the judgment debtor's current net worth; or (B) 25 million dollars. (2) For Recovery of Property. When the judgment is for the recovery of an interest in real or personal property, the trial court will determine the type of security that the judgment debtor must post. The amount of that security must be at least: (A) the value of the property interest's rent or revenue, if the property interest is real; or (B) the value of the property interest on the date when the court rendered judgment, if the property interest is personal. (3) Other Judgment. When the judgment is for something other than money or an interest in property, the trial court must set the amount and type of security that the judgment debtor must post. The security must adequately protect the judgment creditor against loss or damage that the appeal might cause. But the trial court may decline to permit the judgment to be superseded if the judgment creditor posts security ordered by the trial court in an amount and type that will secure the judgment debtor against any loss or damage caused by the relief granted the judgment creditor if an appellate court determines, on final disposition, that that relief was improper. When the judgment debtor is the state, a department of this 29 state, or the head of a department of this state, the trial court must permit a judgment to be superseded except in a matter arising from a contested case in an administrative enforcement action. (4) Conservatorship or Custody. When the judgment involves the conservatorship or custody of a minor or other person under legal disability, enforcement of the judgment will not be suspended, with or without security, unless ordered by the trial court. But upon a proper showing, suspend the appellate court may enforcement of the judgment with or without security. (5) For a Governmental Entity. When a judgment in favor of a governmental entity in its governmental capacity is one in which the entity has no pecuniary interest, the trial court must determine whether to suspend enforcement, with or without security, taking into account the harm that is likely to result to the judgment debtor if enforcement is not suspended, and the harm that is likely to result is suspended. The appellate court may review the trial court’s determination and the suspend enforcement of judgment, with or without security, or refuse to suspend the judgment. If security is required, recovery is limited to the governmental entity’s actual damages resulting from suspension of the judgment. if enforcement to others (b) Lesser Amount. The trial court must lower the amount of security required by (a) to an amount that will not cause the judgment debtor substantial economic harm if, after notice to all parties and a hearing, the court finds that posting a bond, deposit, or security in the amount required by (a) is likely to cause judgment debtor substantial economic harm. the (c) Determination of Net Worth. (1) Judgment Debtor's Affidavit Required; Contents; Prima Facie Evidence. A judgment debtor who provides a bond, deposit, or security under (a)(1)(A) or (e) in an amount based on the debtor's net worth must simultaneously file with the requirements trial court clerk an affidavit that states the debtor's net worth and states complete, information detailed concerning the debtor's assets and liabilities from which net worth can be ascertained. An affidavit that meets these facie evidence of the debtor's net worth for the purpose of establishing the amount of the bond, deposit, or security required to suspend enforcement of the judgment. A trial court clerk must receive and file a net-worth affidavit tendered for filing by a judgment debtor. is prima (2) Contest; Discovery. A judgment creditor may file a contest to the debtor's claimed net worth. The contest need not be The creditor may conduct sworn. reasonable discovery concerning the judgment debtor's net worth. (3) Hearing; Burden of Proof; Findings; Additional Security. The trial court must hear a judgment creditor's contest of the judgment debtor's claimed net worth promptly after any discovery has been completed. The judgment debtor has the burden of proving net worth. The trial court must issue an order that states the debtor's net worth and states with particularity the factual basis for that determination. If the trial court orders additional or other security to supersede the judgment, the enforcement of the judgment will be suspended for twenty days after the trial court's order. If the judgment debtor does not comply with the order within the judgment may be enforced against the judgment debtor. that period, (d) Injunction. The trial court may enjoin the judgment debtor from dissipating or transferring assets to avoid satisfaction of the judgment, but the trial court may not make any order that interferes with the judgment debtor's use, transfer, conveyance, or dissipation of assets in the normal course of business. (e) Alternative Security in Certain Cases. (1) Applicability. Paragraph (e) applies only to a judgment debtor with a net worth of less than $10 million. debtor (2) Alternative Security; Required Showing. On a showing by the judgment debtor that posting security in the amount required under (a)(1) would require the judgment substantially liquidate the judgment debtor’s interests in real or personal property necessary to the normal course of the judgment debtor’s business, the trial court must allow the judgment debtor to post alternative security with a value sufficient to secure the judgment. to (3) Earnings on Appeal. During an appeal, the judgment debtor may continue to manage, use, and receive earnings from interests in real or personal property in the normal course of business. (f) Redetermination. If an appellate court reduces the amount of the judgment used to set the bond, deposit, or security, the judgment debtor is entitled, pending appeal of the judgment to a court of last resort, to a redetermination by the trial court of the amount of the bond, deposit, or security required to suspend enforcement. 24.3. Continuing Trial Court Jurisdiction; Duties of Judgment Debtor (a) Continuing Jurisdiction. Even after the trial court's plenary power expires, the trial court the has continuing following: jurisdiction to do (1) order the amount and type of security and decide the sufficiency of sureties; and (2) if circumstances change, modify the amount or type of security required to continue the suspension of a judgment's execution. (b) Duties of Judgment Debtor. If, after jurisdiction attaches in an appellate court, the trial court orders or modifies the security or decides the sufficiency of sureties, the 30 If judgment debtor the court’s order. does not comply with the order within that period, the judgment may be enforced. When any additional bond, deposit, or security has been filed, the trial court clerk must notify the appellate court. The posting of additional security will not release the previously posted security or affect any alternative security arrangements judgment debtor the previously made unless specifically ordered by the appellate court. that Notes and Comments Comment to 1997 change: Former Rules 47, 48, and 49 are merged. The rule is substantially revised. Paragraph 24.1(a) now provides for superseding the judgment by agreement. Paragraph 24.1(c) is taken from former Rule 48 and provides for a deposit in lieu of the bond, including specific provisions for the release of the deposit. Paragraph 24.1(d) provides the conditions for the surety to honor the bond and for the deposit to be paid to the judgment creditor. In subdivision 24.2, the provisions for determining the amount of the bond or deposit are simplified. All provisions regarding superseding a judgment for an interest in property are merged into subparagraph 24.2(a)(2). The procedure for allowing security in a lesser amount is moved to paragraph 24.2(b) and is made applicable to all judgments. Subdivision 24.4 is taken from former Rule 49. The procedure for appellate review is more precisely stated. Comment to 2008 change: Subdivision 24.2(c) is amended to clarify the procedure in determining net worth. A debtor's affidavit of net worth must be detailed, but the clerk must file what is tendered without determining whether it complies with the rule. If the trial court orders that additional or other security be given, the debtor is afforded time to comply. Subdivision 24.4(a) is revised to clarify that a party seeking relief from a supersedeas ruling should file a motion in the court of appeals that has or presumably will have jurisdiction of the appeal. After the court of appeals has ruled, a party may seek review by filing a petition for writ of mandamus in the Supreme Court. See In re Smith / In re Main Place Custom Homes, Inc., 192 S.W.3d 564, 568 (Tex. 2006) (per curiam). Comment to 2023 change: New Rule 24.2(e) and (f) are added to implement section 52.007 of the Texas Civil Practice and Remedies Code. Comment to 2024 change: Rule 24.1(b)(2) and 24.4(d) are amended to provide that a bond is effective judgment debtor must notify the appellate court of the trial court's action. 24.4. Appellate Review (a) Motions; Review. A party may seek review of the trial court's ruling by motion filed in the court of appeals with jurisdiction or potential jurisdiction over the appeal from the judgment in the case. A party may seek review of the court of appeals' ruling on the motion by petition for writ of mandamus in the Supreme Court. The appellate court may review: (1) the sufficiency or excessiveness of the amount of security, but when the judgment is for money, the appellate court must not modify the amount of security to exceed the limits imposed by Rule 24.2(a)(1); (2) the sureties on any bond; (3) the type of security; (4) the determination whether to permit suspension of enforcement; and (5) the trial court's exercise of discretion under Rule 24.3(a). (b) Grounds of Review. Review may be based both on conditions as they existed at the time the trial court signed an order and on changes in those conditions afterward. (c) Temporary Orders. The appellate court may issue any temporary orders necessary to preserve the parties’ rights. (d) Action by Appellate Court. The motion must be heard at the earliest practicable time. The appellate court may require that the amount of a bond, deposit, or other security be increased or decreased, and that another bond, deposit, or security be provided. The appellate court may require other changes in the trial court order. The appellate court may remand to the trial court for entry of findings of fact or for the taking of evidence. (e) Effect of Ruling. If the appellate court orders additional or other security to supersede the judgment, enforcement will be suspended for 20 days after the appellate 31 upon filing, though the bond is still subject to challenge.