A notice of appeal in New York doesn’t automatically stop a judgment creditor from acting. For most money judgments, the only reliable way to pause enforcement is by filing an undertaking under CPLR 5519. That’s what most practitioners simply call a New York appeal bond.
Attorneys handling appeals out of any of the four Departments should understand how the bond amount is calculated, where the undertaking is filed, and what procedural mistakes most often blow up the stay.
A New York appeal bond, called an “undertaking” in the statute, stays enforcement of a money judgment under CPLR 5519(a)(2). The bond amount must cover the judgment, post-judgment interest at the statutory 9 percent rate, and costs. The undertaking is filed with the clerk of the court that entered the judgment, not with the Appellate Division.
CPLR 5519(a) lists the situations in which serving a notice of appeal automatically stays enforcement. The most common one for civil practitioners is subsection (a)(2): when the judgment directs the payment of a sum of money, and an undertaking in that sum is given.
The two requirements work together. Without the undertaking, the notice of appeal does nothing to stay enforcement of a money judgment. The creditor can move to restrain accounts, file an income execution, or begin a turnover proceeding the same day.
Subsection (a)(1) gives a free pass to the State and other public entities, but that’s about it. For everyone else, the bond is the gating step.
CPLR 5519 says the undertaking must be in the amount of the judgment, including the costs awarded. The complication is the post-judgment interest.
New York’s statutory post-judgment rate is 9 percent. Appeals routinely take two years or longer, which means that by the time the appeal is decided, the principal has grown by roughly 18 percent on top of any costs. If the undertaking only covers the original judgment, the prevailing party will be short.
Industry practice in New York is to set the bond at approximately 120 percent of the judgment to absorb the expected interest and costs. Sureties typically build that buffer into their bond forms. Some bonds include a maximum-liability provision capping exposure at the judgment alone, which leaves the creditor exposed. Counsel on both sides should read the bond carefully to confirm the post-judgment interest and costs are actually covered.
The undertaking is filed with the clerk of the court that entered the judgment, not the Appellate Division. The clerks no longer review undertakings for substantive sufficiency before accepting them, and they don’t take on liability for unreviewed bonds. That means the obligee’s attorney has to verify the bond independently.
The 2014 decision in Vintage Flooring & Tile, Inc. v. DCM of NY LLC out of Kings County Commercial Division illustrates why filing matters. The appellant served the undertaking on the plaintiff but never filed it with the County Clerk. The court held there was no automatic stay because the undertaking was not effective. The appeal continued, but so did enforcement.
A few things to verify on any New York appeal bond:
When the automatic stay doesn’t apply, or when the appellant can’t post the full undertaking, CPLR 5519(c) lets either the trial court or the Appellate Division grant a discretionary stay by motion. These motions are not freely granted. The appellant has to show that the appeal raises substantial issues and that enforcement would cause real harm in the interim.
The discretionary stay is most often used when the order being appealed isn’t a straightforward money judgment, or when the appellant needs interim relief while the bond is being underwritten.
If the underlying judgment is being defended by an insurance carrier with policy limits below the judgment amount, CPLR 5519(b) provides a separate stay mechanism. The insurer can file a sworn statement and undertaking covering the policy limit. The stay then applies to the policy coverage only, and the insured is on notice that any excess remains enforceable.
The most common cause of trouble on a New York appeal bond isn’t legal. It’s logistical. The notice of appeal goes out, the client doesn’t have collateral lined up, and the creditor starts restraint proceedings before the undertaking is on file.
Jurisco writes New York appeal bonds and can usually issue same-day quotes for attorneys who have the judgment in hand. If you’re heading into an appeal, contact us early so the undertaking is ready when the notice goes out.