Section 17 Indemnity and Judgment

• Library: Prof Liability 2005

Consuming policies also pose an issue when an adverse trial verdict is appealed by an insured, an appeal bond must be posted, and the judgment amount is potentially in excess of the coverage limits. A question then arises whether a bond in the full amount of the judgment must be posted or if a bond in the amount of the policy coverage only is required to stay execution and garnishment on the judgment.

This issue is generally controlled by State ex rel. Brickner v. Saitz, 664 S.W.2d 209 (Mo. banc 1984), which holds that it is within the trial court’s discretion to determine if an appeal bond in the amount of the defendant’s insurance coverage will be sufficient to stay execution on the policy. The Court held that Rule 81.09 provides that the...