Khalsa v. Levinson

2003 NMCA 018, 62 P.3d 297, 133 N.M. 206
CourtNew Mexico Court of Appeals
DecidedSeptember 23, 2002
Docket22,389
StatusPublished
Cited by10 cases

This text of 2003 NMCA 018 (Khalsa v. Levinson) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Khalsa v. Levinson, 2003 NMCA 018, 62 P.3d 297, 133 N.M. 206 (N.M. Ct. App. 2002).

Opinion

OPINION

BUSTAMANTE, Judge.

{1} In this divorce case we decide whether a supersedeas bond survived our dismissal of a previous appeal by Respondent (Husband). In his previous appeal, Husband appealed a 1996 order requiring him, among other things, to pay Petitioner interim attorney’s fees and costs in the amount of $30,263.86. See Khalsa v. Levinson, 1998-NMCA-110, 125 N.M. 680, 964 P.2d 844 (Khalsa I). Husband posted a supersedeas bond to stay execution of the order while the case was on appeal. In 1998 we dismissed Husband’s appeal for lack of finality, and remanded the case to district court. See id. In the district court, the surety, St. Paul Surety Company (Surety), moved to release the bond. The court granted Surety’s motion, reasoning that once the appeal was dismissed, the bond was no longer in place. Husband has never paid the attorney’s fees and costs under the 1996 order. Petitioner (Wife) appeals. Concluding that under its own language the bond remained in place if the appeal was dismissed, we reverse. The bond should not have been released, and Wife is entitled to judgment against the Surety.

BACKGROUND

{2} On December 3, 1996, the court entered an order requiring Husband to pay Wife’s attorney’s fees and costs totaling $30,263.86. The order, which we discussed in Khalsa I, also covered other matters. Husband appealed the 1996 order, but did not seek to post a bond until more than sixty days after the notice of appeal was filed. See NMSA 1978, § 39-3-22(A) (1966) (stating that there is no stay of execution after an appeal of a final order has been filed unless a supersedeas bond, in double the amount of the judgment, is filed within sixty days of the judgment or decision) and § 39-3-22(D) (allowing supersedeas in appeals of interlocutory orders but placing a thirty day period from the date of entry of the order for filing the bond). Absent supersedeas, Wife could have immediately enforced the order. See Hall v. Hall, 114 N.M. 378, 386-88, 838 P.2d 995, 1003-05 (Ct.App.1992) (upholding trial court’s finding of contempt against husband who failed to comply with court orders). Wife, however, agreed to allow Husband to post a late bond, thus foregoing her right to immediately enforce the order. Husband posted a bond in the amount of $60,567.72, and the bond was approved by the court on March 7, 1997.

{3} Husband conceded below that, if not for the bond, the order was enforceable. Husband was not entitled to ignore the court’s order, whether it was final or not, and recognized as much when he posted the supersedeas bond to avoid complying with the order. Wife represents that, if not for the appeal and the bond, Wife could have taken steps to garnish Husband’s wages. Wife had apparently begun preparations to do so. However, because the bond was in place and acted — or was treated by the parties — as a stay of execution, Wife did not attempt to enforce the order and took no further steps to execute on it.

{4} Although it is not entirely clear from the record, at some point after the bond was posted, Husband moved out of the country, and now lives in Ireland. Wife states, and Surety does not dispute, that it would be very difficult to enforce the order against Husband at this point.

{5} After we dismissed Husband’s appeal in Khalsa I, and issued our mandate on August 25, 1998, Wife took steps to enforce the order against Husband and Surety. On January 29, 1999, Wife obtained a judgment on the mandate, which once again ordered Husband to pay the attorney’s fees and costs ordered in the 1996 order. Subsequently, Wife sought to enforce the judgment, and obtained judgment against Husband and Surety on November 8, 2000. Permitted to intervene, Surety moved to set aside the November 8th order and to release the bond. This resulted in an Amended Judgment and Order, entered on December 29, 2000, in which the court granted Surety’s request to set aside the judgment against it, but postponed a decision on whether the bond should be released. The district court eventually granted Surety’s request to release the bond on April 16, 2001. Wife’s request for reconsideration of the order was denied, and Wife now brings this appeal.

DISCUSSION

A. Standard of Review

{6} A supersedeas bond is a contract. See 74 Am. Jur.2d Suretyship § 1 (2001) (hereinafter Suretyship); Bateman v. Kennecott Copper Corp., 80 N.M. 778, 779, 461 P.2d 911, 912 (1969) (stating that “[liability under a supersedeas bond is strictly determined by the express terms of the contract of undertaking”); cf. State v. Ericksons, 106 N.M. 567, 567, 746 P.2d 1099, 1099 (1987) (noting that a bail bond is a contract). Interpretation of the bond and whether the Surety is bound are questions of law which we review de novo. Cf. Rummel v. Lexington Ins. Co., 1997-NMSC-041, ¶ 60, 123 N.M. 752, 945 P.2d 970 (stating that the interpretation of an insurance contract is a matter of law reviewed de novo). Where, as here, resolution of the issue involves only the interpretation of documentary evidence, we are in as good a position as the trial court to interpret the contract, and need not defer to the trial court. Kirkpatrick v. Introspect Healthcare Corp., 114 N.M. 706, 711, 845 P.2d 800, 805 (1992).

B. The Bond

{7} Section 39-3-22 describes how execution of judgments in civil actions may be stayed pending appeal. Rule 1-062 NMRA 2002 also provides for a stay on appeal by posting a supersedeas bond. The term “supersedeas” is synonymous with a stay of proceedings, stay of execution, or simply a stay. See Quintana v. Knowles, 113 N.M. 382, 382, 827 P.2d 97, 97 (1992). Supersedeas is designed to protect the appellee against loss and to maintain the status quo during the pendency of the appeal. See id. at 382-83, 827 P.2d at 97-98; Hart v. Employers’ Liab. Assurance Corp., 38 N.M. 83, 85, 28 P.2d 517, 518 (1933).

{8} The bond in this case recognizes that Husband appealed “the Order in this matter issued December 3,1996, awarding attorneys fees and costs in favor of [Wife],” and that the amount of the bond is sufficient to satisfy the requirements of Section 39-3-22. After stating that it was bonding the December 3rd order “on the part of [Husband],” the bond states:

that if said judgment appealed from, or any part thereof, be affirmed as to said Appellant or the appeal be dismissed as to said Appellant, and Appellant ordered to pay the judgment, or any part of such judgment as to which the same shall be affirmed as to said Appellant, and any or all damages and costs which may be awarded against said Appellant upon the appeal, and if said Appellant does not make such payment within 30 days after the filing of the remittitur from the court from which the final appeal is taken, judgment may be entered [against the surety].

(Emphasis added.)

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Cite This Page — Counsel Stack

Bluebook (online)
2003 NMCA 018, 62 P.3d 297, 133 N.M. 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/khalsa-v-levinson-nmctapp-2002.