A common misconception among non-lawyers is that by filing an appeal, a party can avoid the effect of the trial court’s judgment, at least temporarily. The reality is much more complicated.
The Governing Rule
Rule 108 of the Minnesota Rules of Civil Appellate Procedure addresses stays pending appeal. It states an appeal generally “does not stay enforcement of the judgment or order being appealed.” This means, for example, that if a money judgment has been entered, the prevailing party can pursue collection efforts while the appeal is pending. In addition to retaining the ability to enforce the judgment, the trial court also retains jurisdiction “as to matters independent of, supplemental to, or collateral to the order or judgment appealed from.” However, an appeal does “suspend[] the trial court’s authority to make any order that affects the order or judgment appealed from.”
It is not always clear whether an action that the trial court wants to take is one that will affect the judgment on appeal (and therefore is prohibited) or is independent of, supplemental to, or collateral to the judgment on appeal (and is therefore permitted). A 1998 advisory committee comment to Rule 108 allows parties to bring a motion to the appellate court to resolve any uncertainty about the scope of the trial court’s ongoing jurisdiction while the appeal is pending.
Motions for Discretionary Stays
If it is clear that Rule 108 does not automatically suspend the trial court’s authority to take further actions that a party wants to stop, they have the option of bringing a motion for a stay under Rule 108.02. Such a motion allows the court, in its discretion, to grant a stay until the appellate proceedings are concluded. The party seeking the stay will ordinarily have to post security, such as a bond, in order to obtain a stay. In deciding whether to grant a stay, the court will consider factors such as whether the appeal raises substantial issues, injury to one or more parties absent a stay, and the public interest, which includes the effective administration of justice.
Review by the Appellate Courts
If a party disagrees with a trial court’s denial of a stay, they can ask the appellate courts to review that decision. However, the appellate courts will only reverse if the trial court abused its discretion, which is a difficult standard to meet.
In short, determining the scope of the trial court’s authority while an appeal is pending is complicated and should be discussed with an appellate attorney. For more information, please contact Michelle Kuhl and Kay Hunt.