Dallas Bar Association
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Focus | Appellate Law/Antitrust & Trade Regulation
August 2020 Volume 45 Number 8
Kilgore Law Firm Kicks Off 2021 EAJ Campaign BY MICHELLE M. ALDEN
Each year, the Equal Access to Justice (EAJ) Campaign relies primarily on local law firms, corporations, and individuals to fund the operations of the Dallas Volunteer Attorney Program (DVAP). However, a unique source of funding surfaced this year to kick off the EAJ Campaign from the Kilgore Law Firm, a boutique litigation law firm. Kilgore’s motion for a cy pres distribution of $27,000 from funds left over in a class action settlement to the EAJ Campaign was granted. As cited by the Court, “The equitable doctrine of cy pres ensures that the undistributed or unclaimed funds are put to their ‘next best compensation use’.” Ted Anderson, managing member of Kilgore Law Firm, and an attorney on the class action case, is grateful that the funds go to good use. “All of us at Kilgore Law work hard to be good stewards of the Dallas legal community and the people we serve. I’m grateful to Judge Karen Gren Scholer for her decision in making this award to a terrific organization which delivers pro bono legal counsel to Dallas’s poorest citizens. Our attorneys are active members of the Dallas Bar Association and many sit on its governance committees. We’re excited about this unique opportunity to support the Bar’s charitable endeavors.” Despite the many challenges DVAP and the Dallas community at large face during the ongoing pandemic, the EAJ
Focus
Ted Anderson
Campaign continues with new leadership for this year. “I am excited that Vicki Blanton, Rocío Cristina García Espinoza, and Mey Ly-Ortiz will Co-Chair the 2021 Equal Access to Justice Campaign. They did a fantastic job in the 2020 Campaign that raised $1 million for legal services to the poor in Dallas County. We say that ‘it takes a village’ to make these campaigns a success. So, when Vicki, Rocio, and Mey call or write you, please be willing to give both your time to help
and a contribution. We know this will be a challenging year, but with everyone’s help we will continue to make a difference in the community,” stated DBA President Robert L. Tobey. “I am very proud to be part of the Dallas legal community because of the high value and emphasis placed on pro bono legal representation for those who are financially challenged within our city,” said Ms. Blanton, Assistant Vice President-Senior Legal Counsel, Tax & Benefits at AT&T. “I am even more
honored to CoChair the 2021 EAJ Campaign to help ensure that more people are able to get legal advice, counseling and assistance when they are in a critical situation without being concerned that their lack of financial resources will be a barrier to access the legal system. The global pandemic has both highlighted and exacerbated the issues faced by those who can least afford yet another crisis. Pro bono legal services provide not only hope, but tangible help to our neighbors during some of the most stressful times of their lives. Being part of the solution lifts us all to be a caring community and a stronger society.”. Ms. Espinoza,
Vicki Blanton
Rocío Espinoza
Mey Ly-Ortiz
Senior Counsel at continued on page 22
Appellate Law/Antitrust & Trade Regulation
Judgment Pending Appeal: Supersedeas Bonds and Other Security BY BRENT RUBIN
Ordinarily, a party that wins a final judgment can start trying to execute on the judgment 30 days after the judgment is entered. A losing party, called a judgment debtor, can post a supersedeas bond or other security to suspend enforcement of the judgment while an appeal is pending. A supersedeas bond is therefore an important tool for a judgment debtor that believes it has a legitimate chance of getting the judgment reversed on appeal. However, this tool should be used with some caution as it can provide a ready source of funds to satisfy the judgment if affirmed. This article focuses on how enforcement of a judgment can be suspended in Texas
state courts, which is addressed primarily by Texas Rule of Appellate Procedure 24 and Texas Civil Practice and Remedies Code Chapter 52. While a judgment debtor most often suspends enforcement of a judgment pending appeal by filing a bond, Texas law provides for additional methods of superseding the judgment. In lieu of a bond, a debtor can deposit funds with the clerk of court, which saves the debtor the costs associated with a commercial bond. Another option is for the debtor to provide “alternate” security approved by the court. The parties can also suspend enforcement of the judgment pending appeal through a written agreement filed with the court. When a judgment requires the pay-
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ment of money, the security must cover the amount of compensatory damages and costs awarded in the judgment plus interest during the estimated duration of the appeal. The amount of the bond does not include exemplary damages and typically does not include attorneys’ fees. The bond is capped at 50 percent of the judgment debtor’s current net worth or $25 million, whichever is less. If a debtor has a negative net worth, the bond amount will be $0. When the amount of bond is based on the debtor’s net worth, the debtor must file an affidavit stating its net worth, as well as the assets and liabilities used to calculate its net worth. A creditor can file a contest of the debtor’s net worth in the trial court and then conduct discovery on the issue.
The trial court will conduct a hearing, at which the debtor has the burden of proof, and issue an order determining the debtor’s net worth. Different rules apply to non-monetary judgments. When a judgment awards an interest in property, the bond is based on the value of the property interest. For other judgments, such as a judgment entering a final injunction, a trial court can decline to supersede the judgment if the judgment creditor posts security protecting the judgment debtor in the event the court of appeals determines the relief granted by the trial court was improper. If the court allows this type of judgment to be superseded, the security
The 2020 DBA Membership Directory is now available! Check out the directory and legal resource guide used by Dallas attorneys! To request a copy of the new directory, contact pictorial@dallasbar.org.
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