S-3030, the Economic Opportunity Act of 2013 II, advanced from the Senate Commerce Committee on Thursday, November 14th.  Part of a larger economic growth package, Section 3  would cap appeal bonds at $50 million.


New Jersey law requires a defendant to post an appeal bond at least equal to the full amount of the judgment.  However, in 2003 the Legislature approved a $50 million cap on appeal bonds for tobacco companies that participated in the Master Settlement Agreement.


This bill would extend that cap to all defendants.  Under the bill, a court would have discretion, after notice and hearing and for good cause shown, to reduce the appeal bond to an amount lower than the judgment.


The bill is sponsored by Senator Raymond Lesniak (D-Union).  It now heads to the Senate Budget Committee for additional review.