- Appellate Litigation
You’ve been awarded damages at your trial, and naturally, you expect to execute on the judgment as soon as possible. But then the defendant requests a stay of the court order. When a judgment is stayed, it means that the judgment will be suspended, pending appeal of the trial court decision. What should you expect if the defendant asks for a stay? Gusdorff Law provides some practical considerations.
What does “stayed” mean in court, and what should the plaintiff expect? Gusdorff Law provides some practical considerations.
What Does Stayed Mean In Court and Why The Defendant May Request a Stay
Purpose of a Stay
The primary purpose of a stay is to preserve the status quo between the parties, keeping the issue ripe for the courts so they can adjudicate it. The stay ensures that any decision rendered by the appellate court will actually affect the present one.
Irreparable Harm
One reason the defendant may want to stay judgment is the argument that irreparable harm would otherwise occur. The defendant must show that they would lose the benefits of appeal if a stay isn’t first ordered.
Example: Consider a judgment in favor of the plaintiff ordering the sale of real property. If the sale proceeds, there may be no way to reverse the transaction later. From the defendant’s perspective, the judgment would cause irreparable harm unless stayed.
A stay lifts the obligation off the defendant to immediately comply with the trial court’s decision. However, the defendant must usually take action to effectuate a stay.
When a Defendant Must Ask for a Stay (Or Not)
Automatic Stays
Some trial court decisions are automatically stayed upon filing the appeal. For instance, in California, declaratory judgments are often stayed automatically. These decisions don’t require payment of money or exchange of land between parties.
Therefore, a defendant needs to take no additional action other than moving forward with the appeal.
Requested Stays
But for those judgments not automatically stayed, the defendant will have to ask for one. In those cases, the defendant must usually take additional steps. If you’re the plaintiff, you should understand what the defendant must do (or not) in your type of case.
Here are a few basic guidelines:
Money Judgment
The defendant must request the stay and post security (e.g., appeal bond or undertaking).
Mandatory Injunction
Judgment granting a mandatory injunction will be stayed automatically.
Prohibitory Injunction
Judgment granting or denying a prohibitory injunction requires the defendant to obtain a stay order from the appellate court or by writ of supersedeas.
Sale, Conveyance, or Delivery of Property
Judgment ordering the sale, conveyance, or delivery of real or personal property, including the sale of personal property or foreclosure of a mortgage or other lien, is stayed by posting security.
Actions the Trial Court Can Still Take
It should be noted that stays do not completely tie the hands of the trial court. There are actions the trial court can still take. The court is not deprived of jurisdiction in such matters as:
- Collateral issues
- New trial motions
- Correcting clerical errors
- Awarding costs
- Awarding statutory attorney fees
- Settling a statement on appeal
Let Us Advise Your Team On What To Expect Following Trial
While a stay can be frustrating, it is equally important that a plaintiff not be caught off guard by one. Knowing what the defendant may or may not do can help manage expectations. This, in turn, helps you understand when the judgment may be executed.
Gusdorff Law can walk you through the complexities of stays and what to expect if the defendant requests one. Give us a call at 818-877-4515 to learn more.
