Central Valley Ag Cooperative et al v. Leonard et al

Filing 423

ORDER - Plaintiffs' Motion to Stay Execution of Judgments, ECF No. 416 , is granted. Execution of the Attorneys' Fee Award, ECF No. 411 , and taxed costs and expenses, ECF Nos. 412 , 413 , 414 , is stayed pending the resolution of Plai ntiffs' appeal pending before the United States Court of Appeals for the Eighth Circuit. On or before April 8, 2020, Plaintiffs shall file the bond with the Clerk of the Court in the amount of $1,833,592.42. Ordered by Senior Judge Laurie Smith Camp. (LKO)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
CENTRAL VALLEY AG COOPERATIVE,
for itself and as Fiduciary of the Central
Valley Ag Cooperative Health Care Plan;
and CENTRAL VALLEY AG
COOPERATIVE HEALTH CARE PLAN,

8:17CV379

ORDER
Plaintiffs,
vs.
DANIEL K. LEONARD, SUSAN
LEONARD, THE BENEFIT GROUP, INC.,
ANASAZI MEDICAL PAYMENT
SOLUTIONS, INC., CLAIMS DELEGATE
SERVICES, LLC, LINUS G. HUMPAL, and
GMS BENEFITS, INC.,
Defendants.

This matter is before the Court on Plaintiffs’ Motion to Stay Execution of
Judgments, ECF No. 416. For the reasons stated below, the Court will grant the motion
and direct Plaintiffs to file their proposed bond with the Court.
BACKGROUND
This Court granted the Defendants’ Motion for Summary Judgment and dismissed
the action with prejudice on August 30, 2019, ECF No. 373. On February 6, 2020, the
Court awarded total attorney fees of $1,490,000.00 to defendants, collectively, and
entered judgment in their favor for this amount. ECF No. 411. On February 14, 2020, the
Court taxed costs and expenses in the amount of $37,997.85. ECF Nos. 412, 413, 414.
Plaintiffs move the court for an Order to stay any action to enforce the judgments during
the pendency of Plaintiffs’ appeals to the United States Court of Appeals for the Eighth
Circuit. No Defendant has opposed the stay or the amount of the bond.

DISCUSSION
Under Federal Rule of Civil Procedure 62(b), an appellant “may obtain a stay by
providing a bond or other security.” While there is no precise formula for determining the
amount of the bond, the Court has previously approved bonds of approximately 120% of
the total judgment amount as an appropriate amount to secure a stay of execution. See
Morales v. Farmland Foods, Inc., 2013 U.S. Dist. LEXIS 195046 (D. Neb. May 1, 2013)
(Bataillon, J.); Metro. Life Ins. Co. v. Novotny, 2006 U.S. Dist. LEXIS 24627 (D. Neb. Apr.
21, 2006) (Bataillon, J.).
Plaintiffs offer a bond in the amount of $1,833,592.42 as security for the requested
stay of execution. The bond has been underwritten by Western Surety Company, a
Department of Treasury approved and certified surety. The amount of the bond—
$1,833,592.42—is equal to the amount of the fee award and taxed costs ($1,527,997.85),
plus an additional 20% of the judgment amounts to cover interest, costs, and any award
of damages for delay. The Court concludes that the proposed bond is reasonable.
Accordingly,
IT IS ORDERED:
1.

Plaintiffs’ Motion to Stay Execution of Judgments, ECF No. 416, is granted;

2.

Execution of the Attorneys’ Fee Award, ECF No. 411, and taxed costs and
expenses, ECF Nos. 412, 413, 414, is stayed pending the resolution of
Plaintiffs’ appeal pending before the United States Court of Appeals for the
Eighth Circuit; and

3.

On or before April 8, 2020, Plaintiffs shall file the bond with the Clerk of the
Court in the amount of $1,833,592.42.

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Dated this 27th day of March, 2020.

BY THE COURT:
s/Laurie Smith Camp
Chief United States District Judge

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