Have you heard the latest in the Rite Aid case going on in California? Rite Aid is in need of an appeal bond as a Los Angeles County Superior Court denied the company’s post-trial motions to strike down the $8.7 million jury verdict awarded to a former employee.
While Rite Aid attempts to circle the wagons the court is granting them time to post an appeal bond as they seek to appeal the ruling to a higher court.
The appeal bond helps stay the judgement so the pharmaceutical company does not have to pay out millions of dollars until after their appeal has been heard and ruled on.
When An Employee Sues
Trouble for Rite Aid started back in 2007 when a store manager was injured during an in-store robbery. Severe neck injuries restricted the manager’s movements and abilities.
The employee said Rite Aid higher ups did not handle his injury well, or with respect, and even made disparaging remarks leading to him losing his position.
Back in July a jury found that the employee suffered not only a lost in wages, but $5 million in punitive damages, as well.
Rite Aid has tried to shirk responsibility claiming that the store the manager worked at was actually acquired by Rite Aid but not ran by the company. The Judge did not buy the argument saying since the Rite Aid logo appeared at the store, the manager’s work computer, and other work effects that the business is responsible.
Having an employee sue a company can cause serious issues for a business as this case shows.
Staying A Judgement During Appeal
Since the request to slay the ruling was thrown out the only option left for Rite Aid is to post an appeal bond. Without this surety bond the company would be in contempt of court for not paying the judgement immediately.
Courts in California accept an appeal bond to stay a ruling because it financially protects the plaintiff in the case.
A surety bond covers the judgement amount so the court is shown that the ruling will be followed through despite the defendant’s wish to make an appeal to another court.
Money Judgements Can Be A Blow To The Bottom Line
Rite Aid is not the first business to find out how expensive court action can be. When an employee, customer, or other service provider takes a business to court it can be very costly to their bottom line.
Of course, one of the best ways to protect against court cost is to run a business that cares for employees and customers alike. However, not everything can be planned for. And certainly the actions of a few employees against another employee doesn’t represent total internal chaos - but it certainly doesn’t help a legal case.
Taking Court Action
When a California judge makes a ruling they expect it to be followed without delay. If a defendant feels they have an angle to appeal or relative new information then they may seek a judgement from a higher court.
In order to appeal without being in contempt of the judge’s ruling a defendant must post a surety bond called an appeal bond.
The appeal bond generally covers the amount of the money judgement along with any court fees or interest.
Anyone working a case in California should be aware of the appeal bond guidelines. A member of the Jurisco team can help set up an appeal bond quickly so the process will not be delayed.
Rite Aid is posting their appeal bond. Now only time will tell if there appeal will be sound enough to work.