CS for SB 2198 First Engrossed
20092198e1
1 A bill to be entitled
2 An act relating to tobacco settlement agreements;
3 expressing legislative intent to amend s. 569.23,
4 F.S., relating to appeal bond requirements for certain
5 cigarette manufacturers; expressing legislative intent
6 relating to security necessary to stay execution of
7 judgments in actions by certain former class action
8 members, the form of the security, the level of
9 appeals to which the security is applicable, the
10 amount of the security based on the number of appeals,
11 changes in the amount of security based on changes in
12 the number of appeals, claims against the security,
13 and maintenance of the security by the clerk of the
14 Supreme Court; expressing legislative intent to
15 authorize a court to increase the security if assets
16 are dissipated; expressing the legislative intent to
17 provide for the future expiration of s. 569.23, F.S.;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. (1) It is the intent of the Legislature to amend
23 s. 569.23, Florida Statutes, to prescribe the security required
24 to be provided to stay the execution of a judgment in a civil
25 action against a signatory, or successor, parent, or affiliate
26 of a signatory, to a tobacco settlement agreement brought by or
27 on behalf of persons who claim or have been determined to be
28 members of a former class action that was decertified in whole
29 or in part.
30 (2) It is further the intent of the Legislature that:
31 (a) The security shall be provided through the posting with
32 or payment into the registry of the clerk of the Supreme Court
33 of a supersedeas bond, other surety, or cash.
34 (b) The security shall apply during the pendency of all
35 appeals or discretionary appellate reviews in Florida courts.
36 (c) The total amount of security that must be provided by
37 all appellants collectively in a single judgment is based upon
38 the total number of judgments by circuit courts of this state on
39 appeal at the time the security is provided. In cases having
40 multiple appellants, an individual appellant shall provide
41 security with respect to the percent or amount of liability
42 specifically allocated against that appellant in the judgment,
43 or, if liability is not specifically allocated in the judgment,
44 for a share of the unallocated portion of the judgment
45 determined by dividing the judgment equally among all
46 appellants. A judgment may not be stayed until the entire amount
47 of security required by all appellants collectively is provided.
48 (d) The amount of security shall be tiered using the
49 following number ranges of judgments on appeal:
50
51
52 AMOUNT OF MINIMUM MAXIMUM
53
54
55
56
57
58
59
60
61
62
63
64
65 (e) When the number of judgments on appeal changes so that
66 the total is within a larger or smaller range, a party may
67 petition the court to change the security amount consistent with
68 the statutory appeal bond rights prescribed in this act. If the
69 amount of security on deposit is changed by the court, the
70 security shall be modified as follows:
71 1. If the security on deposit is in the form of a
72 supersedeas bond or other surety, the appellant shall replace
73 that supersedeas bond or other surety with security in the new
74 amount as required by this act.
75 2. If the security on deposit is in the form of cash, the
76 clerk of the Supreme Court shall, as appropriate:
77 a. Refund to the appellant the difference between the
78 amount of security on deposit and the reduced amount of security
79 required;
80 b. Hold the difference for future judgments against that
81 appellant; or
82 c. Record any additional cash provided by the appellant
83 consistent with a court order.
84 (f) Any security provided by an appellant for any single
85 judgment is intended to secure the collection of that judgment
86 against the appellant in cases covered by this act. A claim may
87 not be made against such security unless an appellant fails to
88 pay a judgment in a case covered by this act within 30 days
89 after the judgment becomes final. For purposes of this act, a
90 judgment is “final” following the completion of all appeals or
91 discretionary appellate reviews, including reviews by the United
92 States Supreme Court. If an appellant fails to pay a judgment
93 within such time period:
94 1. Any stay of execution required in favor of the appellant
95 under this act shall be immediately lifted by operation of law,
96 unless a stay is provided pursuant to some other provision of
97 law, rule of court, or judicial order; or
98 2. Any appellee against whom a stay of execution of any
99 single judgment against the appellant was in effect under this
100 act may petition the trial court or the Supreme Court for an
101 order directing the clerk of the Supreme Court to make equitable
102 distribution of such security to the appellee whose judgment
103 against such appellant was secured by operation of this act.
104 (g) The clerk of the Supreme Court shall collect fees for
105 receipt of deposits under this act as authorized by ss. 28.231
106 and 28.24(10)(a). In addition, for as long as any cash remains
107 on deposit with the clerk, the clerk of the Supreme Court is
108 entitled to regularly receive as an additional fee, the net
109 investment income earned thereon. The clerk shall use the
110 services of the Chief Financial Officer, as needed, for the
111 custody and management of all bonds, other surety, or cash
112 posted or deposited with the clerk. All fees collected under
113 this act shall be deposited into the State Courts Revenue Trust
114 Fund for use as specified by law.
115 (3) It is further the intent of the Legislature to allow a
116 court to order a specific defendant that dissipates assets in
117 order to avoid payment of a judgment to increase the surety for
118 that defendant.
119 (4) It is further the intent of the Legislature that s.
120 569.23, Florida Statutes, expire on December 31, 2012.
121 Section 2. This act shall take effect upon becoming a law,
122 and applies to all judgments entered on or after that date.