The court also ruled that an appeal was part and parcel of the general duty to defend and was not attributable to the provision regarding payment for the cost of appeal bonds.
But beyond court rulings on the subject, it is just common sense and sound risk management practice to appeal adverse judgments, so paying for appeal bonds should be considered an integral (even if not mentioned) part of the supplementary payments section of insurance policies.
Although 18 states have enacted limits on the size of appeal bonds
in the last three years, Louisiana, Nevada, Oklahoma and West Virginia have specifically limited the size of appeal bonds
that would affect companies that signed the master tobacco settlement.
Appeal Bond Limits Help Only the Big Tobacco Companies
Minnesota companies are not in danger of going bankrupt from large appeal bond requirements.
Tobacco companies have access to enormous financial resources that can be used to satisfy even the largest appeal bond requirement.
April 4 /PRNewswire/ -- "The $12 billion appeal bond Philip Morris is required to post as a result of a landmark consumer fraud judgment against the firm is fair and reasonable and should not be lowered," said Stephen Tillery, lead plaintiffs' attorney, in Miles v.
The appeal bond in the Miles case is fair and reasonable.
Under Illinois law, Philip Morris must post an appeal bond of $12 billion within 30 days of the judgment.
Facing a deep budget crisis, Illinois legislators are concerned that a large appeal bond would pre-empt the state's collection of the $315 million owed as a result of the master tobacco settlement agreement (MSA).
1 billion but HB0276 would limit the appeal bond to just $25 million.
TCPI has previously obtained appeal bonds
staying enforcement of the judgments against the Company and Mr.