Corcoran et al v. CVS Health Corporation

Northern District of California, cand-4:2015-cv-03504

ORDER RE: STAY OF EXECUTION OF JUDGMENT THROUGH APPEAL AND APPROVAL OF SUPERSEDEAS BOND by Judge Yvonne Gonzalez Rogers; granting 348 Motion to Stay. (Additional attachment(s) added on 1/4/2018: # 1 Exhibit Form)

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1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 6 CHRISTOPHER CORCORAN, ET AL., CASE NO. 15-cv-03504-YGR 7 Plaintiffs, ORDER RE: STAY OF EXECUTION OF 8 vs. JUDGMENT THROUGH APPEAL AND APPROVAL OF SUPERSEDEAS BOND 9 CVS HEALTH, ET AL., Re: Dkt. No. 348 10 Defendants. 11 On September 5, 2017, this Court granted in part plaintiffs' motion for class certification 12 and granted defendant CVS's motion for summary judgment. (Dkt. No. 327.) The Court entered Northern District of California United States District Court 13 judgment in favor of CVS on September 13, 2017. (Dkt. No. 339.) CVS submitted a Bill of Costs 14 as the prevailing party on September 27, 2017. (Dkt. No. 340.) On October 13, 2017, the Clerk of 15 the Court issued a judgment against plaintiffs and in favor of CVS in the amount of $101,823.47. 16 (Dkt. No. 343.) Meanwhile, plaintiffs timely appealed the summary judgment order and other 17 orders in this case on October 3, 2017. (Dkt. No. 341.) 18 Now before the Court is plaintiffs' motion for an order which (i) stays execution of the 19 judgment pending appeal, including the October 13, 2017 award of costs of $101,823.47; and (ii) 20 approves plaintiffs' supersedeas bond of $131,606 for deposit to the Court Register. Having 21 carefully considered the pleadings and the arguments of the parties, the Court hereby GRANTS 22 plaintiffs' motion. 23 I. LEGAL STANDARD 24 Under Fed. R. Civ. Pro. 62(d), "[i]f an appeal is taken, the appellant may obtain a stay by 25 supersedeas bond. . . . The stay takes effect when the court approves the bond." Id. "Rule 62(d) 26 generally contemplates that, at least with the awarding of monetary compensation, appellant is 27 entitled to a stay as of right if they post a supersedeas bond." Maner v. Cty. of Stanislaus, 2016 28 WL 8730741, at *5 (E.D. Cal. 2016); see also 11 Charles A. Wright & Arthur R. Miller, Federal 1 Practice and Procedure § 2905 (1973) ("The stay issues as a matter of right in cases within Rule 2 62(d), and is effective when the supersedeas is approved by the court"). "The purpose of 3 requiring a judgment debtor to post a supersedeas bond is to ensure that the judgment creditor's 4 interests are adequately protected during the appeals process." Fed. Trade Comm'n v. Inc21.com 5 Corp., 2010 WL 4071664, at *7 (N.D. Cal. 2010); see also Rachel v. Banana Republic, Inc., 831 6 F.2d 1503, 1505 n.1 (9th Cir. 1987) (noting that the "purpose of a supersedeas bond is to secure 7 the appellees from a loss resulting from the stay of execution"). 8 Several courts in this district have approved supersedeas bonds which secure the judgment 9 awarded plus two years of post-judgment interest. See Holzhauer v. Golden Gate Bridge Highway 10 & Transport. Dist., 2017 WL 3388319, at *4 (N.D. Cal. 2017) (approving supersedeas bond 11 which provided for two years of post-judgment interest) (citing Pajaro Dunes Rental Agency, Inc. 12 v. Pajaro Dunes Ass'n, 2002 WL 202412, *5 (N.D. Cal. 2002) (same)). Courts have also noted Northern District of California United States District Court 13 that "[i]n determining the amount necessary to warrant a stay of execution. . . '[a]lthough 14 practices vary among judges, a bond of 1.25 to 1.5 times the judgment is typically required.'" 15 Carson Indus., Inc. v. Am. Tech. Network, Corp., 2016 WL 2961865, at *1 (N.D. Cal. 2016) 16 (quoting Cotton ex rel. McClure v. City of Eureka, 860 F.Supp.2d 999, 1029 (N.D. Cal. 2012)). 17 II. DISCUSSION 18 Here, plaintiffs move for an order to (i) stay the execution of judgment in this case and (ii) 19 approve plaintiffs' posting of a $131,606 supersedeas bond to the Court Register. (Dkt. No. 348, 20 Declaration of Bonnie E. Sweeney, Ex. A.) Defendant CVS "takes no position on whether the 21 amount of the bond. . . is sufficient and leaves that determination to the Court." (Dkt. No. 349.) 22 The Court finds plaintiffs' proposed $131,606 supersedeas bond sufficient to secure the 23 $101,823.47 judgment plus two years of post-judgment interest.1 See Holzhauer, 2017 WL 24 1 25 Federal post-judgment interest is governed by 28 U.S.C. § 1961(a), which provides for "a rate equal to the weekly average 1-year constant maturity Treasury yield." According to the Board of 26 Governors of the Federal Reserve System, the weekly average 1-year constant maturity Treasury yield was 1.70% as of December 15, 2017. See Board of Governors of the Federal Reserve System, 27 Selected Interest Rates (Daily) – H.15 (Release date: December 15, 2017). Therefore, two years post- judgment interest on the $101,823.47 judgment in this case would be approximately $3,460.20. 28 Accordingly, a supersedeas bond of $105,284.20 would represent an amount which exceeds the costs taxed plus two years post-judgment interest. 2 1 3388319, at *4; Pajaro, 2002 WL 202412, *5. Further, the $131,606 bond represents an amount 2 which is "1.25 to 1.5 times the judgment" entered in favor of CVS which is generally sufficient 3 "to warrant a stay of execution." Carson, 2016 WL 2961865, at *1; see also Cotton, 860 4 F.Supp.2d at 1029. Accordingly, the Court finds plaintiffs' proposed $131,606 supersedeas bond 5 sufficient to "secure the appellees from a loss resulting from the stay of execution," Rachel, 831 6 F.2d at 1505 n.1, and GRANTS plaintiffs' motion. 7 III. CONCLUSION 8 For the foregoing reasons, the Court hereby GRANTS plaintiffs' motion as follows: 9 1. The Court STAYS execution of the judgment in this case pending appeal, including the 10 October 13, 2017 award of costs of $101,823.47. 11 2. The Court APPROVES plaintiffs' proposed $131,606 supersedeas bond for deposit to 12 the Court Register. Northern District of California United States District Court 13 3. Within five (5) days of this order, plaintiffs, by and through their counsel, shall post 14 the $131,606 supersedeas bond by (1) delivering a copy of this order to the Clerk of 15 Court for the Northern District of California, (see Fed. R. Civ. P. 67(a); N.D. Cal. 16 General Order No. 31); (2) tendering to the Northern District of California Clerk's 17 Office the total cash amount or a cashier's check in that total amount, payable to the 18 "Clerk, U.S. District Court"; and (3) contemporaneously lodging a completed and 19 signed version of the attached form with the Clerk's Office. 20 4. In the event that Plaintiffs do not comply with the foregoing instructions, this Order 21 shall be automatically vacated in its entirety. 22 5. The Clerk of Court shall release the deposited funds only by court order, pursuant to 23 Northern District of California General Order No. 31, Fed. R. Civ. P. 67(b), and 28 24 U.S.C. § 2042. 25 IT IS SO ORDERED. 26 27 Dated: January 4, 2018 YVONNE GONZALEZ ROGERS 28 UNITED STATES DISTRICT COURT JUDGE 3