LEGG, LLC v. Unni
Filing
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ORDER by Judge Edward M. Chen granting 83 Defendant's Motion to Stay Execution of Judgment Through Appeal and Approval of Proposed Supersedeas Bond (emclc2, COURT STAFF) (Filed on 7/25/2014)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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LECG, LLC, a California limited liability
company,
No. C-13-0639 EMC
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Plaintiff,
v.
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For the Northern District of California
United States District Court
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SANJAY UNNI, an Individual,
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Defendant.
___________________________________/
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ORDER GRANTING DEFENDANT’S
MOTION FOR STAY OF EXECUTION
OF JUDGMENT THROUGH APPEAL
AND APPROVAL OF SUPERSEDEAS
BOND
SANJAY UNNI, an Individual,
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(Docket No. 83)
Counter-Plaintiff,
v.
LECG, LLC, a California limited liability
company,
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Counter-Defendant.
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On May 23, 2014, the Court granted Plaintiff’s Motion for Summary Judgment and entered a
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judgment against Defendant Sanjay Unni (“Unni”) in the amount of $366,790. See generally Order,
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Dkt. No. 77; Judgment in a Civil Case, Dkt. No. 78. Unni now requests that the Court, pursuant to
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Rule 62(d) of the Federal Rules of Civil Procedure, (1) order a stay of execution of judgment
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through appeal and (2) approve its supersedeas bond. Defendant’s Motion for Stay (“Motion”), Dkt.
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No. 83, 1:12-17. The motion will be GRANTED.
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DISCUSSION
A.
Legal Standard Under Federal Rule of Civil Procedure 62(d)
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A party taking an appeal from a District Court in the federal system is entitled to a stay of a
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money judgment “as a matter of right” by posting a bond in accordance with Federal Rule of Civil
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Procedure 62(d). United States v. Boyce, 148 F. Supp. 2d 1069, 1096 (S.D. Cal. 2001); see also
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Ryan v. Editions Ltd. West, Inc., No. 06-cv-04812-PSG, 2013 WL 417814 (N.D. Cal. Feb. 1, 2013)
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(“‘[A]n appellant may obtain a stay as a matter of right by posting a supersedeas bond acceptable to
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the court.’” (quoting Matter of Combined Metals Reduction Co., 557 F.2d 179, 193 (9th Cir. 1977)).
Rule 62(d), titled “Stay with Bond on Appeal” states, “[i]f an appeal is taken, the appellant may
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For the Northern District of California
United States District Court
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obtain a stay by supersedeas bond, except in an action described in Rule 62(a)(1) or (2). The bond
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may be given upon or after filing the notice of appeal or after obtaining the order allowing the
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appeal. The stay takes effect when the court approves the bond.” Fed. R. Civ. P. 62(d). Rule 62(a)
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states that “(1) an interlocutory or final judgment in an action for an injunction or a receivership; or
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(2) a judgment or order that directs an accounting in an action for patent infringement” should not be
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“stayed after being entered, even if an appeal is taken.” Fed. R. Civ. P. 62(a).
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This case does not involve (1) an interlocutory or final judgment in an action for an
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injunction or a receivership or (2) a judgment or order that directs an accounting in an action for
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patent infringement. Plaintiff LECG, LLC filed suit against Unni alleging breach of contract and
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unjust enrichment related to an employment agreement. Order at 1:25-26. The Court ordered a
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solely monetary judgment. Order at 17:2-3. Thus, this case does not fall under either Rule 62(a)
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exception. Further, the bond was given on June 19, 2014, after Unni filed the notice of appeal on
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June 13, 2014. Notice of Appeal, Dkt. No. 81. Accordingly, the stay takes effect when the Court
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approves the bond.
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B.
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Validity of Supersedeas Bond
The Northern District’s Civil Local Rules allow the Court to use its discretion in deciding
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whether to approve a supersedeas bond. N.D. Cal. L. R. 65.1-1; see also Finley v. Hartford Life &
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Acc. Ins. Co., C-06-6247 CW, 2010 WL 2762737, at *2 (N.D. Cal. July 13, 2010) (“District courts
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have inherent discretionary authority . . . in setting the amount of a supersedeas bond.” (citation
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omitted)). Nonetheless, “[g]enerally, district courts should attempt to achieve full satisfaction of a
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judgment in setting a supersedeas bond.” Finley, 2010 WL 2762737, at *2. In the present case,
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Unni has posted a valid supersedeas bond in the amount of $550,185, or 150% of the judgment.
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Motion, Exh. 1,2. Accordingly, the Court will approve Unni's supersedeas bond.
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For the reasons stated above, the Court GRANTS Unni’s Motion, and approves the
supersedeas bond and orders the execution of judgment in this action stayed through appeal.
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IT IS SO ORDERED.
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For the Northern District of California
United States District Court
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Dated: July 25, 2014.
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_________________________________
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EDWARD M. CHEN
United States District Judge
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