Crow et al v. Trans-System, Inc. et al

Filing 229

ORDER ON DEFENDANT TRANS-SYSTEM, INC.'S RESPONSE TO PLAINTIFFS' MOTION FOR SUPERSEDEAS BOND PURSUANT TO FRCP 62, granting in part and denying in part 223 Motion for Bond. Defendant Trans-System, Inc., d/b/a James J. Williams Bulk Transport is ORDERED to post a supersedeas bond in the amount of $6,491,122 by January 31, 2018. Signed by Judge Robert J. Bryan. (JL)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA

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STEVEN CROW and CHERYL CROW,
and CHERYL CROW on behalf of and as
parent and guardian of J.M.C., J.J.C., and
G.E.C., minors,

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Plaintiffs,
v.

CASE NO. 3:15-cv-05665-RJB
ORDER ON DEFENDANT TRANSSYSTEM, INC.’S RESPONSE TO
PLAINTIFFS’ MOTION FOR
SUPERSEDEAS BOND
PURSUANT TO FRCP 62

TRANS-SYSTEM, INC., an Indiana
Corporation d/b/a/ James J. Williams Bulk
Service Transport,
Defendant.

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THIS MATTER comes before the Court on Plaintiffs’ Motion for Supersedeas Bond

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Pursuant to FRCP 62. Dkt. 223. The Court has considered Defendant JJW’s Response (Dkt.

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225), Plaintiffs’ Reply (Dkt. 228), and the remainder of the file herein.

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Plaintiffs seek an order requiring Defendant JJW to post a supersedeas bond in the

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amount of $7,250,000, pursuant to Fed. R. Civ. P. 62. Dkt. 172. Defendant JJW timely filed its

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Notice of Appeal on October 31, 2017 following a jury award of $6,490,000. The Court also

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ORDER ON DEFENDANT TRANS-SYSTEM, INC.’S RESPONSE TO PLAINTIFFS’ MOTION FOR
SUPERSEDEAS BOND PURSUANT TO FRCP 62 - 1

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awarded $1122 in costs. Dkt. 216. Plaintiffs are concerned that if Plaintiffs prevail on appeal,

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Defendant JJW may not be able to satisfy the judgment. See Dkt. 223.

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Defendant JJW has no objection to posting a supersedeas bond, but requests that the

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Court issue its order after a planned appellate mediation scheduled for January 24, 2018. Dkt.

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225. Defendant JJW also maintains that a bond in the amount of the judgment, $6,490,000, is

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sufficient to protect Plaintiffs’ interests, because Defendant JJW has Primary Excess Coverage

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(ATTIC, RRG, up to $5,000,000) and Commercial Excess Coverage (Gemini, the remaining

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amount) sufficient to cover the judgment. Id.

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In reply, Plaintiffs argue Defendant JJW has not diligently informed Plaintiffs of

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insurance coverage issues since the judgment, and requiring Defendant JJW to post a

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supersedeas bond prior to mediation may help facilitate resolution. Dkt. 228.

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Fed. R. Civ. P. 62(d) gives courts authority to require a supersedeas bond, and courts are

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accorded broad discretion as to the amount. See Am. Ass’n of Naturopathic Physicians v.

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Hayhurst, 227 F.3d 1104, 1109 (9th Cir. 2009). “The posting of a bond protects the prevailing

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plaintiff from the risk of a later uncollectable judgment and compensates him for delay in the

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entry of the final judgment.” NRLB v. Westphal, 859 F.2d 818, 819 (9th Cir. 1988).

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The Court finds that at present Plaintiffs’ interests will be protected by a supersedeas

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bond in the amount of $6,491,122. Although Plaintiffs suspect that Defendant JJW may be thinly

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capitalized, Defendant JJW has made a showing that its insurers are willing to defend and to post

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bond, which reduces the risk that Plaintiff will not get paid.

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Defendant JJW should post a supersedeas bond in the amount of $6,491,122 by January

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31, 2018, and to that extent Plaintiffs’ motion should be granted. This Order makes no finding

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about any applicable interest. See, e.g., 28 U.S.C. §1961(a). Although Defendant JJW should be

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ORDER ON DEFENDANT TRANS-SYSTEM, INC.’S RESPONSE TO PLAINTIFFS’ MOTION FOR
SUPERSEDEAS BOND PURSUANT TO FRCP 62 - 2

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required to post a bond to cover the jury award plus costs, Plaintiffs have not, at present, made a

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showing that an additional amount should be required, so their motion should otherwise be

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denied without prejudice.
***

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THEREFORE, it is HEREBY ORDERED that Plaintiffs’ Motion for Supersedeas Bond

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Pursuant to FRCP 62 is GRANTED IN PART. Defendant Trans-System, Inc., d/b/a James J.

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Williams Bulk Transport is ORDERED to post a supersedeas bond in the amount of $6,491,122

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by January 31, 2018.

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Plaintiffs’ motion is OTHERWISE DENIED WITHOUT PREJUDICE.

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IT IS SO ORDERED.

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The Clerk is directed to send uncertified copies of this Order to all counsel of record and

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to any party appearing pro se at said party’s last known address.
Dated this 22nd day of January, 2018.

A
ROBERT J. BRYAN
United States District Judge

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ORDER ON DEFENDANT TRANS-SYSTEM, INC.’S RESPONSE TO PLAINTIFFS’ MOTION FOR
SUPERSEDEAS BOND PURSUANT TO FRCP 62 - 3