California Supreme Court Defines What Costs are Recoverable on Appeal

In California, filing an appeal does not stay enforcement of judgment unless the judgment debtor posts an undertaking. Undertaking can be in form of a bond. In order to issue the bond, insurance companies charge a fee, and may also require a collateral such as a letter of credit (LC). In this recent decision, the California Supreme Court held that interest expenses incurred to borrow funds to provide security for a letter of credit are not recoverable as a part of costs on appeal under rule 8.278(d)(1)(F) of the California Rues of Court.
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