If a defendant appeals a civil judgment, what bonds or security are typically required to stay enforcement in New York state courts?
Executive summary
New York law ordinarily requires an undertaking—most commonly an appeal or supersedeas bond—sufficient to cover the judgment, post‑judgment interest and costs to obtain an automatic stay of enforcement when a civil defendant appeals; alternatively a certified check or a court order can accomplish the stay in certain circumstances (CPLR 5519) . Courts retain discretion to limit, modify or vacate stays and there are special rules for insurers and certain large malpractice judgments .
1. What the statute actually demands: the “undertaking” under CPLR 5519
CPLR 5519 provides the baseline: to stay enforcement of a money judgment pending appeal a party must give an undertaking—commonly an appeal bond—in an amount equal to the judgment balance, inclusive of post‑judgment interest and costs (the statute and commentary emphasize the bond must cover the judgment amount, interest and costs) [1]. The statute also creates an automatic stay in specified circumstances once the notice of appeal and the undertaking are served, rather than requiring a separate court order .
2. Form of security: bond, certified check, or court order
New York practice recognizes several ways to secure the stay: an appeal bond (issued by a surety), a certified check posted as an undertaking, or an order from the Appellate Term or other appellate court staying enforcement (local court rules confirm an undertaking by bond or certified check, or an appellate order, is required to halt execution) . Practically speaking, litigants most often obtain a surety appeal (supersedeas) bond from an insurance/surety company because it frees cash flow while assuring the judgment creditor of collectability .
3. How much must the bond equal—and why interest and costs matter
The bond must equal the judgment “balance” and explicitly include post‑judgment interest and costs; commentators and bond providers stress that practitioners ensure the bond amount incorporates statutory interest (commonly cited as 9% statutory interest in practice notes) and any recoverable costs or fees, and some practitioners recommend a cushion above the raw judgment figure when underwriting practices or local rules require it .
4. Qualified sureties and technical requirements
Unless the court orders otherwise, the undertaking must be executed by a qualifying surety—typically an insurance company authorized to write such undertakings in New York—and must follow statutory form and notary requirements; surety companies and legal guides describe underwriting checks and local rule nuances that can affect acceptance .
5. Exceptions, judicial discretion and special categories
CPLR 5519 contains carve‑outs and the courts retain power to impose, limit or vacate stays; for instance, where a judgment debtor posts an undertaking the stay can still be tailored or limited by the court, and there are statutory protections when the defendant is insured but coverage is less than the judgment—procedures exist to stay enforcement up to policy limits . In malpractice appeals over $1 million, the statute contemplates specific undertakings tied to insurance limits and anti‑fraud covenants and requires courts to find a reasonable probability of reversal before granting a stay under those terms .
6. Timing and tactical issues—automatic stay and late bonds
An automatic stay under CPLR 5519 typically takes effect when a notice of appeal and the required undertaking are filed and served; practitioners warn that because prevailing parties may execute judgments immediately upon entry, many appellant teams prepare the notice and bonding arrangements in advance . Recent case law and commentary debate rigid deadlines for applying for an appeal bond—some trial judges have rejected strict cutoffs and one commercial division decision held there is no absolute deadline to apply for an appeal bond, highlighting that courts will police dilatory conduct but not necessarily invalidate late undertakings in all circumstances .
7. Practical fallout and enforcement tensions
Practically, posting a bond usually halts enforcement actions—levies or garnishments—although narrow judicial exceptions exist where a marshal’s levy preceded the bond and courts may address claims of interference or poundage fees; appellate opinions confirm that filing a bond normally requires only that enforcement actions be temporarily stayed pending appeal resolution . Where parties disagree about adequacy of an undertaking, the appellate court or the court of original instance can be asked to resolve disputes and tailor relief .