I was just reading the Wikipedia entry about Randall Tex Cobb, and in it is this bit regarding a lawsuit he was involved in:
Which got me wondering, how does all that work, logistically, with respect to the money?
Is the money due immediately following the initial verdict, and if so, when the verdict is overturned does Tex have to come up with the money to return?
Or does Tex get nothing until the appeals process has been exhausted, and if so, is the money held in escrow during the appeals process, or is the defendant not yet on the hook for anything?
My understanding is that all this means – even if the verdict is NOT reversed – is that the other party is legally obligated to give Cobb the money. If they refuse, it is treated like any other unpaid debt, and Cobb’s only legal recourse is to send a bill collector after them, and eventually sue them. Only AFTER he wins the suit would the court be empowered to put a lien on the other party’s property or actually withdraw money from the other party’s bank accounts, and stuff like that. It is truly sad how many victims win in court but never actually receive their money.
I’m a bit of an expert, unfortunately. Our firm has had many large verdicts over-turned by appellate courts. In almost every case, plaintiff gets nothing until the appeal process is over, and defendant posts a surety bond to guarantee ability to pay if necessary.
The defendant isn’t on the hook until the original judgment becomes final. If a notice of appeal is filed, the judgment won’t become final until the appellate process is complete. If no appeal is filed, the judgment becomes final and due and owing after the deadline to appeal passes (30 days or so, but this varies depending on the jurisdiction’s rules of civil procedure.)
In some states, as Procrustus notes, a party appealing an adverse award of monetary damages must post a bond. In others they don’t. In non-bond scenarios interest and statutory penalties may accrue during the appeal.
Cobb probably didn’t need the money, but had he been a regular Joe he might have financed the litigation.
Not really. Most judgment-proof defendants are never sued in the first place because the plaintiffs’ attorneys know they won’t get anything and will squander their resources needlessly.