Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 3250, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to enact a monetary limit of $25,000,000 on supersedeas bonds, except:

Your Committee received testimony in support of this measure from The Coalition to Stop Lawsuit Abuse; The Grocery Manufacturers of America; and The Hawaii Business League.

Your Committee finds that this measure establishes fairness in litigated cases by giving greater assurance than under current law that the losing party appellant has the ability to perfect the appeal, particularly involving very large damage awards. This measure recognizes the different financial capacity of businesses by differentiating small business concerns as defined by the federal Small Business Act (P.L. 87-367) and classified as such by the Small Business Administration by its size.

On a broader scale, the right to an appeal is one of the most critical safeguards in the court litigation system. Citizens who lose at the trial level must have the ability to appeal. This measure protects that right by ensuring that the amount of the supersedeas bond bears a relationship to the financial assets of the appellant. Otherwise, an appellant may not be able to post the bond and hence lose the right to appeal.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3250, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.