Opinion
NO. 263
06-07-2016
IN RE: ORDER AMENDING RULE 1737 OF THE PENNSYLVANIA RULES OF APPELLATE PROCEDURE
APPELLATE PROCEDURAL RULES DOCKET
ORDER
PER CURIAM
AND NOW, this 7th day of June, 2016, upon the recommendation of the Appellate Court Procedural Rules Committee; the proposal having been published before adoption at 45 Pa.B. 6113 (October 10, 2015):
IT IS ORDERED pursuant to Article V, Section 10 of the Constitution of Pennsylvania that Pennsylvania Rule of Appellate Procedure 1737 is amended in the attached form.
This ORDER shall be processed in accordance with Pa.R.J.A. No. 103(b), and shall be effective October 1, 2016. Additions to the rule are shown in bold and are underlined.
Deletions from the rule are shown in bold and in brackets. Rule 1737. [Objections to Security.] Modification of Terms of Supersedeas (a) The [lower]trial court or the appellate court, may at any time, upon application of any party and after notice and opportunity for hearing[, upon cause shown]:
(1) [R]r equire security of a party otherwise exempt from the requirement of filing security[, or increase, decrease or eliminate the amount of any security which has been or is to be filed.] upon cause shown;(b) The parties may at any time stipulate to the type or amount of security and , upon filing, such a written stipulation will act to set the terms of a supersedeas of the judgment to the same extent as would an order of the court. Official Note:
(2) [S]s trike off security improperly filed[.];
(3) [P]p ermit the substitution of surety and enter an exoneration of the former surety[.]; or
(4) increase , decrease, eliminate, or otherwise alter the amount or type of any security that has been or is to be filed by a party, upon cause shown for the modification.
The amount of automatic supersedeas of money judgments has been set at 120 percent of the verdict , and in most instances that amount will assure payment of a judgment and interest accrued during an appeal without imposing undue hardship on an appellant. See Pa.R.A.P. 1731. Nonetheless, there may be circumstances in which it would be appropriate for a court to modify the default approach to security, either in type, method, or time for posting, or in amount. Courts have the discretion to increase or decrease and to eliminate the requirement that security be posted, based upon the proofs offered by the parties. The parties by agreement may also determine to modify the amount or type of supersedeas , particularly given that Pa.R.A.P. 2771 provides for the premium paid for the cost of supersedeas bonds or other appellate bonds to be taxable as a cost on appeal.
A party may seek appellate review of an order resolving an application under this rule. See Pa.R.A.P. 1732 and Pa.R.A.P. 3315.