Coffeyville Resources Refining & Marketing, LLC v. Liberty Surplus Insurance Corporation et al

Filing 602

MEMORANDUM AND ORDER granting 593 Motion for Order. The court sets the supersedeas bond amount at $27,789,343.75. The judgment against Illinois Union is hereby (1) stayed temporarily until the expiration of 15 days after this order or the pos ting of the supersedeas bond by Illinois Union, whichever occurs first, and then(2) further stayed pending the outcome of Illinois Union Insurance Company's appeal to the Tenth Circuit Court of Appeals, provided the bond is posted. Signed by District Judge Monti L. Belot on 4/10/2015. (smg)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS

COFFEYVILLE RESOURCES REFINING &
MARKETING, LLC,
Plaintiff,
v.
ILLINOIS UNION INSURANCE COMPANY
and NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, PA.,
Defendants.

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CIVIL ACTION
No.

08-1204

MEMORANDUM AND ORDER
Before the court is Illinois Union’s motion for stay of execution
of judgment (Doc. 593) and Coffeyville Resource’s response (Doc. 597).
The motion argues that Illinois Union’s ability to pay the $22,231,475
judgment against it is secure enough that no supersedeas bond should
be required to stay the judgment on appeal. Coffeyville Resources
argues that a bond of 125% of the judgment amount should be required.
Rule 62 of the Federal Rules of Civil Procedure provides that an
appellant

may

obtain

a

stay

of

execution

of

the

judgment

by

supersedeas bond. Fed. R. Civ. P. 62(d). The local rules provide that
unless the court directs otherwise, a supersedeas bond must be the
amount of the judgment plus 25% to cover interest and any damages for
delay. D. Kan. R. 62.2.
Case law provides that a district court has discretion to stay
the proceedings without a full supersedeas bond “when the judgment
creditor’s interest would not be unduly endangered.” Boardwalk Apts.,
L.C. v. State Auto Property and Cas. Ins. Co., 2015 WL 899312, *1 (D.

Kan., Mar. 3, 2015). See also Dutton v. Johnson Co. Bd. of Com’rs.,
884 F.Supp. 431, 435 (D. Kan. 1995) (citing relevant factors). Waiver
of the bond requirement occurs only upon the appellant demonstrating
good cause. Brinkman v. Dept. of Corrections of the State of Kansas,
815 F.Supp. 407, 408 (D. Kan. 1993).
Although the court has no reason to question Illinois Union’s
assertion of its current good financial standing, as Coffeyville
Resources points out there is no sure way of predicting future events
and whether circumstances could change. The court concludes that any
risk of non-payment or changed circumstances should be borne by
Illinois

Union

rather

than

Coffeyville

Resources,

and

that

a

supersedeas bond in the standard amount contemplated by the local
rules should be required.
The court sets the supersedeas bond amount at $27,789,343.75. The
judgment against Illinois Union is hereby (1) stayed temporarily until
the expiration of 15 days after this order or the posting of the
supersedeas bond by Illinois Union, whichever occurs first, and then
(2) further stayed pending the outcome of Illinois Union Insurance
Company’s appeal to the Tenth Circuit Court of Appeals, provided the
bond is posted. Illinois Union’s motion for stay (Doc. 593) is granted
to that extent.
IT IS SO ORDERED.
Dated this 10th day of April 2015, at Wichita, Kansas.

s/Monti Belot
Monti L. Belot
UNITED STATES DISTRICT JUDGE

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