One of the most difficult times for in-house counsel is when they are on the receiving end of an adverse money judgment. The biggest concern usually is how to get the judgment turned around on the merits. But a related—and more immediate—issue is how to stay the execution of the judgment until post-judgment remedies can be contemplated and possibly pursued. In federal courts, application of the pertinent Rules of Civil Procedure can be a challenge. There are some surprising gaps and wrinkles in the process, and being aware of them beforehand can help in-house counsel steer a case safely from trial through post-judgment motions and to appeal without prematurely paying a judgment.
As an initial matter, it is worth noting that because the plaintiff has the right to execute the judgment (within certain constraints), the plaintiff also can choose not to execute. It is always permissible for the parties to enter into an agreement or stipulation to stop execution during the post-judgment period and all the way through the appeal. Most often, however, the federal rules regarding stays of execution will come into play at some point—and in that event, being prepared for each step of the process is key.
