Ariz. R. Civ. App. P. 7

As amended through August 22, 2024

Rule 7 - Stay of Proceedings to Enforce a Judgment

(a)Supersedeas Bonds and Other Security.

(1)Generally; Exceptions.

(A) A supersedeas bond is a bond filed in the superior court, as provided by this Rule and by applicable statutes, which stays enforcement of, or execution on, a judgment so that an appeal may be pursued. As used in this Rule, the term "bond" or "supersedeas bond" also includes other types of security as ordered by the superior court in lieu of a supersedeas bond. A party may file a supersedeas bond before or after filing a notice of appeal.

(B) A party may not obtain a supersedeas bond to stay an award of custody of children or the payment of spousal maintenance or child support.

(C) A judgment against the State, or an agency or a political subdivision of the State, is stayed as provided by Rule 62(e) of the Arizona Rules of Civil Procedure.

(2)Setting the Bond by Stipulation or Motion; Stay; Other Orders. The amount of the bond may be determined by stipulation or motion. Filing a motion in the superior court for a supersedeas bond under this Rule temporarily stays enforcement of, or execution on, the judgment, with the same effect as described in Rule 7(b), until the superior court has either denied the motion or set the bond amount and provided appropriate time for posting the bond. However, until a bond is posted, a party may record a judgment. Unless the motion is uncontested, on request of any party, the superior court must hold a hearing on a motion to set bond. The superior court may enter any further order, in lieu of or in addition to the bond, which may be appropriate to preserve the status quo or the effectiveness of the judgment.

(3)Setting the Amount of the Bond Ex Parte. The superior court may determine the amount of the bond ex parte if the requesting party submits a motion with an affidavit:

(A) stating that the party has made a good faith attempt to obtain a stipulation from the other parties; and

(B) describing the party's efforts, if any, to give notice, or the reasons why it is not feasible under the circumstances to give the other parties an opportunity to be heard before the setting of bond.

(4)Amount of the Bond Monetary Judgment. Except for family court judgments governed by Rule 7(a)(7), and subject to Rule 7(a)(9), if the judgment includes a monetary award, the amount of the bond relating to the monetary award must be the lowest of the following:

(A) the total amount of damages, costs, attorney's fees, and prejudgment interest included in the judgment when entered, excluding punitive damages;

(B) fifty percent of the net worth of the party seeking the stay; or

(C) twenty-five million dollars.

The party requesting the stay must prove net worth by a preponderance of the evidence.

(5) Amount of the Bond-Judgment for Recovery of Property. If the judgment includes the recovery of an interest in real or personal property, the superior court must determine the amount of the bond, if any, that the requesting party must post. Subject to Rule 7(a)(7) and (9), the amount of the bond must be at least:

(A) if the property interest is in real property, its fair rental value or the value of projected revenues while the appeal is pending; or

(B) if the property interest is personal, its value on the date the court entered judgment.

(6)Amount of the Bond-Other Judgment. If the judgment includes an injunction, or relief other than an award of money or recovery of an interest in property, the superior court must determine the amount of the bond, if any, that the requesting party must post. The superior court may issue any other orders as provided in Arizona Rule of Civil Procedure Rule 62(e). Subject to Rule 7(a)(9), the superior court should consider the bond or other orders needed to adequately:

(A) protect the adverse party against loss or damage that such party is likely to suffer from a stay if the judgment is affirmed; and

(B) preserve the status quo or the effectiveness of the judgment.

(7)Amount of the Bond-Family Court Judgments. For that portion of any family court judgment that divides assets or orders the transfer of property or money under A.R.S. § 25-318, or that awards costs or expenses under A.R.S. § 25-324, the superior court must determine the amount of the bond, if any, that the requesting party must post, taking into account the judgment as a whole and whether requiring a bond would impose an undue hardship.

(8)Stay of Judgment Ordering Execution of an Instrument or Sale of Perishable Property. The requirements of Arizona Rule of Civil Procedure 62(f), as applicable, also apply to the enforcement of, or execution on, any judgment under Rule 7(a)(5), (6), or (7).

(9)Exceptions.

(A) Notwithstanding Rule 7(a)(4), the superior court may require a requesting party to post a bond in an amount up to the full amount of the judgment if an adverse party proves by clear and convincing evidence that the requesting party is intentionally dissipating assets outside the ordinary course of business to avoid payment of a judgment.

(B) The superior court also may lower the bond amount to an amount that will not cause requesting party substantial economic harm or may modify or reduce any other security required under these rules, if the requesting party proves by clear and convincing evidence that it is likely to suffer substantial economic harm if required to post a bond in the amount required under Rule 7(a)(4) through (7).

(C) In determining the amount of the bond, the superior court may consider whether there is other security for the judgment, or whether the sheriff or the court has custody of any of the property in controversy.

(10)Objections to the Bond.

(A) The requesting party must serve a copy of the bond, and serve a copy of or provide an adequate description of other security, on the other parties before the bond is filed or other security is deposited with the superior court clerk.

(B) Any party may file objections within 5 days after the requesting party serves a copy of the bond or a description of the other security, specifying reasons why the bond or the other described security is erroneous or defective, or why the surety or other security provider is unqualified. If the court made an ex parte determination of the amount of the bond, any other party may object to the sufficiency of the amount. A party waives any errors, defects, or insufficiencies in a supersedeas bond that are not specified in timely filed objections.

(C) If no party has timely objected, the requesting party may file the bond or deposit other security as ordered by the superior court with the superior court clerk. Otherwise, the superior court will hold a hearing within 10 days after service of objections. The requesting party may file the bond or deposit other security with the superior court clerk after the hearing on those objections, as allowed by the superior court.

(11)Notice of Bond or Other Security. The superior court clerk will distribute a notice to all other parties if a bond is filed or other security is deposited.

(b)Effect and Duration of a Stay.

(1)Generally. If an a party requesting a stay files a supersedeas bond as stipulated or as ordered by the superior court, and has complied with all other conditions imposed by the superior court, then this Rule automatically stays enforcement of, and execution on, the judgment and all proceedings related to the execution on the judgment. The stay takes effect when the court approves the supersedeas bond and remains in effect until issuance of the appellate court's mandate, dismissal of the appeal, or as otherwise specified in the supersedeas bond or ordered by the court.

(2)Prior Order. If the superior court has issued an order allowing execution on the judgment before a supersedeas bond is filed, the superior court clerk must promptly give notice to the sheriff and must recall the execution, and there may not be any further execution on the judgment pending the appeal's resolution.

(3)Prior Lien. If another party has recorded a judgment lien before the supersedeas bond is filed, that party must promptly record a release of the lien.

(c)Power of an Appellate Court to Enter a Stay, an Injunction, or Other Order. This Rule does not limit the power of an appellate court, or of an appellate judge or justice, to stay proceedings while an appeal is pending. A party requesting a stay from an appellate court under this Rule must first request the stay in the superior court. An appellate court or an appellate judge or justice also may suspend, modify, restore, or grant an injunction while an appeal is pending, may enter any order appropriate to preserve the status quo; and may enter any order to preserve the effectiveness of the decision that the appellate court will enter.

(d)RuleProceeding Against a Surety or Other Security Provider. If a party gives security in the form of a bond or other security with one or more sureties or other security providers, each provider submits to the jurisdiction of the superior court. and irrevocably appoints the superior court clerk as it's agent on whom any papers affecting it's liability on the bond or undertaking may be served. A party may enforce the security provider's liability by motion and is not required to file an independent action. The party seeking enforcement must serve the superior court clerk with the motion and any notice of the motion required by the superior court, and the clerk must then promptly mail or otherwise distribute copies to the security provider whose address is known.

Ariz. R. Civi. app. proc. 7

Amended June 18, 1992, effective 12/1/1992;12/13/2011, effective 1/1/2012;9/2/2014, effective 1/1/2015;9/2/2016, effective 1/1/2017; amended effective 1/1/2019.

APPLICATION

<The Jan. 1, 2015 amendment is applicable to all appeals filed on or after Jan. 1, 2015, as well as all other appeals pending on that date, except when application would not be feasible or would work an injustice, so that the former rule will be applied.>

HISTORICAL NOTES

Source:

Civ.Code 1913, §§ 1243, 1244.

Rev.Code 1928, §§ 3669, 3670.

Fed.Rules Civ.Proc., Rules 62(d), 62(g), 73(d), 73(f), 28 U.S.C.A.

Code 1939, §§ 21-1507, 21-1509, 21-1808 to 21-1810, 21-1816.

Rules Civ.Proc., former Rules 62(d), 62(e), 62(h), 73(k), 73(l), 73(r).