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A BILL TO BE ENTITLED
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AN ACT
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relating to the suspension of a money judgment pending appeal in a |
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civil action. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 52, Civil Practice and Remedies Code, is |
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amended by adding Section 52.007 to read as follows: |
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Sec. 52.007. ALTERNATIVE SECURITY IN CERTAIN CASES. (a) |
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This section applies only to a judgment debtor with a net worth of |
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less than $10 million. |
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(b) On a showing by the judgment debtor that posting |
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security in the amount required under Section 52.006(a) or (b) |
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would require the judgment debtor to substantially liquidate the |
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judgment debtor's interests in real or personal property necessary |
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to the normal course of the judgment debtor's business, the trial |
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court shall allow the judgment debtor to post alternative security |
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with a value sufficient to secure the judgment. |
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(c) During an appeal, the judgment debtor shall continue to |
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manage, use, and receive earnings from interests in real or |
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personal property in the normal course of business. |
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(d) If an appellate court reduces the amount of the judgment |
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that the trial court used to set security, the judgment debtor is |
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entitled, pending appeal of the judgment to a court of last resort, |
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to a redetermination of the amount of security required to suspend |
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enforcement of a judgment under Section 52.006 or under Rule 24, |
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Texas Rules of Appellate Procedure. |
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SECTION 2. The change in law made by this Act applies only |
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to a civil action commenced on or after the effective date of this |
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Act. A civil action commenced before the effective date of this Act |
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is governed by the law in effect immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |