Kelley v. Westford Special Situations Master Fund, L.P.

U.S. District Court, District of Minnesota

Kelley v. Westford Special Situations Master Fund, L.P.

Trial Court Opinion

                  UNITED STATES DISTRICT COURT                           
                     DISTRICT OF MINNESOTA                               


Douglas  A.  Kelley,  in  his  capacity  as  the  No. 19-cv-1073 (KMM/JFD) 
Trustee of the PCI Liquidating Trust,                                    

     Plaintiff,                                                          

v.                                                                       

Westford Special Situations Master Fund, L.P.;                           
Westford  Global  Asset  Management,  Ltd.;                              
Westford  Special  Situations  Fund,  Ltd.;                              
Westford  Special  Situations  Fund,  L.P.;                              
Westford Asset  Management,  LLC;  Epsilon                               
Global  Master  Fund,  L.P.;  Epsilon  Global                            
Active  Value  Fund,  Ltd.;  Epsilon  Global                             
Active Value Fund I-B Ltd.; Epsilon Global                               
Active  Value  Fund,  L.P.;  Epsilon  Global  ORDER                      
Master  Fund  II,  L.P.  a/k/a  Epsilon  Global                          
Master Fund II, L.P., Sub 1; Epsilon Global                              
Active  Value  Fund  II,  Ltd.,  f/k/a  Westford                         
Investment Fund Ltd.; Epsilon Global Active                              
Value Fund II-B Ltd.; Epsilon Global Active                              
Value Fund II-G Ltd.; Epsilon Global Active                              
Value  Fund  II,  L.P.;  Epsilon  Global Active                          
Value Fund II-B, L.P.; Epsilon Global Active                             
Value Fund II-G, L.P.; Epsilon Global Asset                              
Management,  Ltd.;  Epsilon  Investment                                  
Management,  LLC;  Epsilon  Structured                                   
Strategies  Master  Fund,  L.P.,  f/k/a  Epsilon                         
Global Master Fund III – Structured Strategies,                          
L.P.;  Epsilon  Global Active Value  Fund  III                           
Ltd.; Stafford Towne, Ltd.; and Steve Goran                              
Stevanovich,                                                             

     Defendants.                                                         


    This matter is before the Court on Defendants’ Motion for Stay of Enforcement of 
Judgment. Dkt. No. 309. Specifically, Defendants seek an Order staying enforcement of the 
judgment in this matter pending appeal and waiver of the requirement of posting a supersedeas 
bond.                                                                     
                         BACKGROUND                                      
    Plaintiff Douglas A. Kelley, Trustee of the Petters Company, Inc. (“PCI”) Liquidating 
Trust, brought this adversary case in Bankruptcy Court for the District of Minnesota seeking to 

avoid and recover money transfers made to Defendants by PL Ltd. and PCI, entities controlled by 
Thomas J. Petters. The Trustee commenced this adversary case in October 2010, and the case was 
transferred to this Court on April 19, 2019. The litigation in this Court lasted several years, 
including periods when the case was stayed as the parties attempted to resolve the matter through 
settlement, delays due to the health of Defendant Steve G. Stevanovich, and complications due to 
the withdrawal of Defendants’ previous attorneys.                         
    Eventually, subject to the reservation of the rights to contest this Court’s ruling on the 
Trustee’s “law of the case” motion, the parties stipulated to a bench trial on the validity of the 
Defendants’ good-faith defense to the Trustee’s avoidance claims. On November 13, 2024, the 

Court entered its Findings of Fact and Conclusions of Law. Dkt. No. 287. The Court found that the 
Trustee had established the elements of the fraudulent-transfer claims, and Defendants did not 
meet their burden to establish the affirmative defense that they received the transfers in good faith. 
Dkt. No. 287. The Court found that the following Defendants were liable in the following amounts: 
$87,601,542 against Epsilon Global Master Fund, L.P.; $120,264,648 against Epsilon Global 
Master  Fund  II,  L.P.;  $62,533,470  against  Westford  Special  Situations  Master  Fund,  L.P.; 
$4,358,245 against Epsilon Structured Strategies Master Fund, L.P.; $59,261,441 against Steve G. 
Stevanovich; $3,374,256 against Epsilon Investment Management, LLC; $11,256,277 against 
Westford Asset Management, LLC; $36,269,768 against Epsilon Global Asset Management, Ltd.; 
and $8,361,139 against Westford Global Asset Management, Ltd. On May 2, 2025, the Court found 
that the Trustee was entitled to an award of prejudgment interest, and entered an Order Directing 
Entry of Judgment by the Clerk of Court. Dkt. No. 304. On May 5, 2025, the Clerk of Court entered 
Judgment. Dkt. No. 305.                                                   
    Defendants filed a motion for a new trial on May 30, 2025, Dkt. No. 306, and the parties 

subsequently agreed to a briefing schedule that was adopted by the Court, Dkt. No. 318. At the 
same time they filed their new trial motion, Defendants filed the motion seeking a stay of 
enforcement of the Judgment and a waiver of supersedeas bond. Dkt. No. 309. That motion was 
fully briefed on June 6, 2025.                                            
                          DISCUSSION                                     
    Unless a court orders otherwise, execution on a judgment is automatically stayed for 30 
days after the judgment is entered. Fed. R. Civ. P. 62(a). In addition to this automatic stay, if a 
judgment debtor posts a bond or other security, that party may obtain a stay of execution at any 
time after entry of judgment. Fed. R. Civ. P. 62(b).1 This means that “an appellant may obtain a 

stay of [a] money judgment during the pendency of the appeal as a matter of right by posting an 
adequate supersedeas bond.” Estate of Snyder v. Julian, No. 1:11-cv-24-LMB, 
2014 WL 668191
, 
at *1 (E.D. Mo. Feb. 20, 2014) (quoting United States v. Mansion House Ctr. Redev. Co., 
682 F. Supp. 446, 449
 (E.D. Mo. 1988)). “Courts in this District generally require the bond to be set ‘in 
the full amount of the judgment plus interests, costs, and damages for delay.’” Willis Elec. Co., 
Ltd. v. Polygroup Ltd., 
2024 WL 1653709
, at *1 (D. Minn. Apr. 17, 2024) (quoting Adzick v. Unum 



1 “Subdivision 62(b) carries forward in modified form the supersedeas bond provisions of former 
Rule 62(d).” Fed. R. Civ. P. 62, advisory committee notes—2018 amendment. 
Life Ins. Co. of Am., No. 99-cv-808 (JRT/FLN), 
2003 WL 21011345
, at *1 (D. Minn. Apr. 16, 
2003)).                                                                   
    District courts have discretion “to waive the bond requirement and stay enforcement of the 
judgment without a bond.” Global Traffic Techs., LLC v. Morgan, No. 10-cv-4110 (ADM/JJG), 
2014 WL 3513149
, at *1 (D. Minn. July 16, 2014). In deciding whether to waive the supersedeas 

bond requirement, courts consider the following factors:                  
         (1) the complexity of the collection process; (2) the amount of time 
         required  to  obtain  a  judgment  on  appeal;  (3)  the  degree  of 
         confidence that the district court has in the availability of funds to 
         pay the judgment; (4) whether the defendant's ability to pay the 
         judgment is so plain that the cost of a bond would be a waste of 
         money;  and  (5)  whether  the  defendant  is  in  such  a  precarious 
         financial situation that the requirement to post a bond would place 
         the other creditors of the defendant in an insecure position.   

Id.
 The party seeking the stay has the burden “to convince the Court to depart from the usual 
requirement of a full supersedeas bond.” Id.; see also Krekelberg v. Anoka Cnty., 
439 F. Supp. 3d 1143
, 1163 (D. Minn. 2020), vacated in part on other grounds, remanded sub nom. Krekelberg v. 
City of Minneapolis, 
991 F.3d 949
 (8th Cir. 2021).                        
    Defendants argue that the Court should grant their request for a stay of execution of the 
Judgment pending appeal and waiver of the supersedeas bond because they lack the assets to either 
post a sufficient bond or to ultimately pay any significant portion of the Judgment. They contend 
that: (1) the Master Funds have only modest assets in the form of ownership interests in two 
private, non-revenue-producing companies; (2) the Management Companies have no assets and 
are judgment proof; and (3) Mr. Stevanovich’s only available asset is an art collection worth 
approximately $100,000. Defs.’ Mem. 7–9, Dkt. No. 310; Stevanovich Decl. ¶¶ 5–11. In addition, 
Mr. Stevanovich declares that three of the four Master Funds have been unable to satisfy a 
stipulated judgment entered against them in an adversary proceeding in the Southern District of 
New York; in fact, because the prospects of collection against those defendants appeared “bleak,” 
the court granted the plan administrator’s motion to terminate the receivership. Stevanovich Decl. 
¶¶ 7–9.                                                                   
    The Court finds that Defendants have failed to satisfy their burden to obtain a stay of the 
execution of the judgment pending appeal and waiver of the bond requirement. Defendants aver 

only that they are unable to pay any judgment due to their precarious (indeed destitute) financial 
position. But nothing in their submission suggests that requiring them to post a bond to obtain a 
stay of execution of the Judgment “would jeopardize other creditors.” Willis Elec., 
2024 WL 1653709
, at *2.                                                           
    Rather, Defendants suggest that they should not be required to post a bond simply because 
they cannot. But this fact weighs against the relief sought. Courts tend to waive the bond 
requirement based on a conclusion that a judgment debtor is in such a financially secure position 
that there is no reasonable likelihood a judgment creditor will end up unable to collect after the 
appeals process is completed. In that situation courts have found posting a bond would be 

unnecessary. See, e.g., Krekelberg, 439 F. Supp. 3d at 1163 & n.6 (granting judgment debtor’s 
request for a waiver of the bond requirement where its solid credit ratings, detailed information 
regarding its operating budget, and its contingency and self-insurance funds all showed that it 
would be able to pay and plaintiff’s interest in collection was secured); Estate of Snyder, 
2014 WL 668191
, at *2; 11 Charles A. Wright & Arthur R. Miller, Fed. Prac. & Proc., Stay Upon Appeal, 
§ 2905 & n.16 (3d ed. May 21, 2025 update) (stating that courts will exercise their discretion to 
waive the bond requirement “when they are satisfied that the judgment debtor has sufficient funds 
to pay if the judgment is affirmed and there will be no delay in doing so” and collecting cases). 
    Not only do Defendants cite no authority holding that a judgment debtor’s inability to pay 
weighs in favor of waiving the bond requirement, but many courts have reached the opposite 
conclusion. Global Traffic Techs., 
2014 WL 3513149
, at *3 (“Defendants’ current representations 
that they are unable to satisfy the judgment ‘counsels not in favor of an unsecured stay but, instead, 
in favor of a stay only upon the posting of adequate security.’”) (quoting Slip N’ Slide Records, 

Inc. v. TVT Records, LLC, No. 05-21113, 
2007 WL 1098751
 (S.D. Fla. Apr. 8, 2007); Lewis v. 
United Joint Venture, No. 1:07-cv-639, 
2009 WL 1654600
 (W.D. Mich. June 10, 2009); Avirgan 
v. Hull, 
125 F.R.D. 185, 187
 (S.D. Fla. 1989); Wright & Miller, § 2905 & n.18 (stating that “the 
bond requirement will not be waived solely on the basis that it will pose a severe financial hardship 
on the appellant unless some other form of security is offered” and citing cases in the footnote). 
    Moreover, Defendants make no showing that the relevant factors described above weigh 
in  favor  of  their  request  to  waive  the  bond  requirement.  For  example,  Defendants  leave 
unaddressed any concerns about the complexity of the collection process, and the Trustee has 
reasonably explained why efforts at collection are unlikely to be simple. Pl.’s Opp’n 4–6, Dkt. 

No. 315; Decl. of Igor Margulyan ¶ 3 & Ex. A, Dkt. No. 316. Further, Defendants do not address 
how the amount of time required to resolve the appeal supports waiver and the record provides no 
basis for the Court to have confidence in the availability of funds to pay the judgment. Indeed, 
Defendants  have  gone  to  demonstrate  the  opposite.  While  this  may  ultimately  mean  that 
Defendants are correct that the Trustee “cannot squeeze blood from a stone,” Defs.’ Mem. 13, they 
provide no reason why that reality should allow them to obtain a stay of execution of the judgment 
without posting a supersedeas bond.                                       
    Mr. Stevanovich also argues that he “always has the option to declare personal bankruptcy 
if the Trustee attempts to enforce the judgment against him,” and “[d]oing so would trigger an 
automatic stay under 
11 U.S.C. § 362
 . . . leaving the Trustee as an unsecured creditor of a 
dischargeable judgment debt.” Defs.’ Mem. 12. However, nothing before the Court suggests 
Mr. Stevanovich has filed for personal bankruptcy, nor has he stated that he intends to do so. This 
argument essentially asks the Court to adopt a bankruptcy stay without requiring Mr. Stevanovich 
to actually engage in the bankruptcy process.                             

    Finally, the Court finds the alternative security proposed by Defendants—the Master 
Funds’  remaining  ownership  interests  in  two  private  companies  and  Mr. Stevanovich’s  art 
collection—are insufficient to provide any security for the Trustee’s ability to collect if the 
Judgment is affirmed on appeal. Eckerberg v. Inter-State Studio & Publ’g Co., No. 14-4176-CV-
C-MJW, 
2016 WL 9459301
, at *1 (W.D. Mo. Mar. 28, 2016) (“A bond for a nominal amount does 
nothing to serve the rational of Fed. R. Civ. P. 62(d) and the purpose of supersedeas bonds—to 
protect the Plaintiff’s interests in exchange for the delay in executing the judgment.”). 

ORDER

    For the foregoing reasons, IT IS HEREBY ORDERED that Defendants’ Motion for Stay 

of Enforcement of Judgment (Dkt. No. 309) is DENIED.                      

Date: July 28, 2025             s/Katherine Menendez                     
                                Katherine Menendez                       
                                United States District Judge             

Trial Court Opinion

                  UNITED STATES DISTRICT COURT                           
                     DISTRICT OF MINNESOTA                               


Douglas  A.  Kelley,  in  his  capacity  as  the  No. 19-cv-1073 (KMM/JFD) 
Trustee of the PCI Liquidating Trust,                                    

     Plaintiff,                                                          

v.                                                                       

Westford Special Situations Master Fund, L.P.;                           
Westford  Global  Asset  Management,  Ltd.;                              
Westford  Special  Situations  Fund,  Ltd.;                              
Westford  Special  Situations  Fund,  L.P.;                              
Westford Asset  Management,  LLC;  Epsilon                               
Global  Master  Fund,  L.P.;  Epsilon  Global                            
Active  Value  Fund,  Ltd.;  Epsilon  Global                             
Active Value Fund I-B Ltd.; Epsilon Global                               
Active  Value  Fund,  L.P.;  Epsilon  Global  ORDER                      
Master  Fund  II,  L.P.  a/k/a  Epsilon  Global                          
Master Fund II, L.P., Sub 1; Epsilon Global                              
Active  Value  Fund  II,  Ltd.,  f/k/a  Westford                         
Investment Fund Ltd.; Epsilon Global Active                              
Value Fund II-B Ltd.; Epsilon Global Active                              
Value Fund II-G Ltd.; Epsilon Global Active                              
Value  Fund  II,  L.P.;  Epsilon  Global Active                          
Value Fund II-B, L.P.; Epsilon Global Active                             
Value Fund II-G, L.P.; Epsilon Global Asset                              
Management,  Ltd.;  Epsilon  Investment                                  
Management,  LLC;  Epsilon  Structured                                   
Strategies  Master  Fund,  L.P.,  f/k/a  Epsilon                         
Global Master Fund III – Structured Strategies,                          
L.P.;  Epsilon  Global Active Value  Fund  III                           
Ltd.; Stafford Towne, Ltd.; and Steve Goran                              
Stevanovich,                                                             

     Defendants.                                                         


    This matter is before the Court on Defendants’ Motion for Stay of Enforcement of 
Judgment. Dkt. No. 309. Specifically, Defendants seek an Order staying enforcement of the 
judgment in this matter pending appeal and waiver of the requirement of posting a supersedeas 
bond.                                                                     
                         BACKGROUND                                      
    Plaintiff Douglas A. Kelley, Trustee of the Petters Company, Inc. (“PCI”) Liquidating 
Trust, brought this adversary case in Bankruptcy Court for the District of Minnesota seeking to 

avoid and recover money transfers made to Defendants by PL Ltd. and PCI, entities controlled by 
Thomas J. Petters. The Trustee commenced this adversary case in October 2010, and the case was 
transferred to this Court on April 19, 2019. The litigation in this Court lasted several years, 
including periods when the case was stayed as the parties attempted to resolve the matter through 
settlement, delays due to the health of Defendant Steve G. Stevanovich, and complications due to 
the withdrawal of Defendants’ previous attorneys.                         
    Eventually, subject to the reservation of the rights to contest this Court’s ruling on the 
Trustee’s “law of the case” motion, the parties stipulated to a bench trial on the validity of the 
Defendants’ good-faith defense to the Trustee’s avoidance claims. On November 13, 2024, the 

Court entered its Findings of Fact and Conclusions of Law. Dkt. No. 287. The Court found that the 
Trustee had established the elements of the fraudulent-transfer claims, and Defendants did not 
meet their burden to establish the affirmative defense that they received the transfers in good faith. 
Dkt. No. 287. The Court found that the following Defendants were liable in the following amounts: 
$87,601,542 against Epsilon Global Master Fund, L.P.; $120,264,648 against Epsilon Global 
Master  Fund  II,  L.P.;  $62,533,470  against  Westford  Special  Situations  Master  Fund,  L.P.; 
$4,358,245 against Epsilon Structured Strategies Master Fund, L.P.; $59,261,441 against Steve G. 
Stevanovich; $3,374,256 against Epsilon Investment Management, LLC; $11,256,277 against 
Westford Asset Management, LLC; $36,269,768 against Epsilon Global Asset Management, Ltd.; 
and $8,361,139 against Westford Global Asset Management, Ltd. On May 2, 2025, the Court found 
that the Trustee was entitled to an award of prejudgment interest, and entered an Order Directing 
Entry of Judgment by the Clerk of Court. Dkt. No. 304. On May 5, 2025, the Clerk of Court entered 
Judgment. Dkt. No. 305.                                                   
    Defendants filed a motion for a new trial on May 30, 2025, Dkt. No. 306, and the parties 

subsequently agreed to a briefing schedule that was adopted by the Court, Dkt. No. 318. At the 
same time they filed their new trial motion, Defendants filed the motion seeking a stay of 
enforcement of the Judgment and a waiver of supersedeas bond. Dkt. No. 309. That motion was 
fully briefed on June 6, 2025.                                            
                          DISCUSSION                                     
    Unless a court orders otherwise, execution on a judgment is automatically stayed for 30 
days after the judgment is entered. Fed. R. Civ. P. 62(a). In addition to this automatic stay, if a 
judgment debtor posts a bond or other security, that party may obtain a stay of execution at any 
time after entry of judgment. Fed. R. Civ. P. 62(b).1 This means that “an appellant may obtain a 

stay of [a] money judgment during the pendency of the appeal as a matter of right by posting an 
adequate supersedeas bond.” Estate of Snyder v. Julian, No. 1:11-cv-24-LMB, 
2014 WL 668191
, 
at *1 (E.D. Mo. Feb. 20, 2014) (quoting United States v. Mansion House Ctr. Redev. Co., 
682 F. Supp. 446, 449
 (E.D. Mo. 1988)). “Courts in this District generally require the bond to be set ‘in 
the full amount of the judgment plus interests, costs, and damages for delay.’” Willis Elec. Co., 
Ltd. v. Polygroup Ltd., 
2024 WL 1653709
, at *1 (D. Minn. Apr. 17, 2024) (quoting Adzick v. Unum 



1 “Subdivision 62(b) carries forward in modified form the supersedeas bond provisions of former 
Rule 62(d).” Fed. R. Civ. P. 62, advisory committee notes—2018 amendment. 
Life Ins. Co. of Am., No. 99-cv-808 (JRT/FLN), 
2003 WL 21011345
, at *1 (D. Minn. Apr. 16, 
2003)).                                                                   
    District courts have discretion “to waive the bond requirement and stay enforcement of the 
judgment without a bond.” Global Traffic Techs., LLC v. Morgan, No. 10-cv-4110 (ADM/JJG), 
2014 WL 3513149
, at *1 (D. Minn. July 16, 2014). In deciding whether to waive the supersedeas 

bond requirement, courts consider the following factors:                  
         (1) the complexity of the collection process; (2) the amount of time 
         required  to  obtain  a  judgment  on  appeal;  (3)  the  degree  of 
         confidence that the district court has in the availability of funds to 
         pay the judgment; (4) whether the defendant's ability to pay the 
         judgment is so plain that the cost of a bond would be a waste of 
         money;  and  (5)  whether  the  defendant  is  in  such  a  precarious 
         financial situation that the requirement to post a bond would place 
         the other creditors of the defendant in an insecure position.   

Id.
 The party seeking the stay has the burden “to convince the Court to depart from the usual 
requirement of a full supersedeas bond.” Id.; see also Krekelberg v. Anoka Cnty., 
439 F. Supp. 3d 1143
, 1163 (D. Minn. 2020), vacated in part on other grounds, remanded sub nom. Krekelberg v. 
City of Minneapolis, 
991 F.3d 949
 (8th Cir. 2021).                        
    Defendants argue that the Court should grant their request for a stay of execution of the 
Judgment pending appeal and waiver of the supersedeas bond because they lack the assets to either 
post a sufficient bond or to ultimately pay any significant portion of the Judgment. They contend 
that: (1) the Master Funds have only modest assets in the form of ownership interests in two 
private, non-revenue-producing companies; (2) the Management Companies have no assets and 
are judgment proof; and (3) Mr. Stevanovich’s only available asset is an art collection worth 
approximately $100,000. Defs.’ Mem. 7–9, Dkt. No. 310; Stevanovich Decl. ¶¶ 5–11. In addition, 
Mr. Stevanovich declares that three of the four Master Funds have been unable to satisfy a 
stipulated judgment entered against them in an adversary proceeding in the Southern District of 
New York; in fact, because the prospects of collection against those defendants appeared “bleak,” 
the court granted the plan administrator’s motion to terminate the receivership. Stevanovich Decl. 
¶¶ 7–9.                                                                   
    The Court finds that Defendants have failed to satisfy their burden to obtain a stay of the 
execution of the judgment pending appeal and waiver of the bond requirement. Defendants aver 

only that they are unable to pay any judgment due to their precarious (indeed destitute) financial 
position. But nothing in their submission suggests that requiring them to post a bond to obtain a 
stay of execution of the Judgment “would jeopardize other creditors.” Willis Elec., 
2024 WL 1653709
, at *2.                                                           
    Rather, Defendants suggest that they should not be required to post a bond simply because 
they cannot. But this fact weighs against the relief sought. Courts tend to waive the bond 
requirement based on a conclusion that a judgment debtor is in such a financially secure position 
that there is no reasonable likelihood a judgment creditor will end up unable to collect after the 
appeals process is completed. In that situation courts have found posting a bond would be 

unnecessary. See, e.g., Krekelberg, 439 F. Supp. 3d at 1163 & n.6 (granting judgment debtor’s 
request for a waiver of the bond requirement where its solid credit ratings, detailed information 
regarding its operating budget, and its contingency and self-insurance funds all showed that it 
would be able to pay and plaintiff’s interest in collection was secured); Estate of Snyder, 
2014 WL 668191
, at *2; 11 Charles A. Wright & Arthur R. Miller, Fed. Prac. & Proc., Stay Upon Appeal, 
§ 2905 & n.16 (3d ed. May 21, 2025 update) (stating that courts will exercise their discretion to 
waive the bond requirement “when they are satisfied that the judgment debtor has sufficient funds 
to pay if the judgment is affirmed and there will be no delay in doing so” and collecting cases). 
    Not only do Defendants cite no authority holding that a judgment debtor’s inability to pay 
weighs in favor of waiving the bond requirement, but many courts have reached the opposite 
conclusion. Global Traffic Techs., 
2014 WL 3513149
, at *3 (“Defendants’ current representations 
that they are unable to satisfy the judgment ‘counsels not in favor of an unsecured stay but, instead, 
in favor of a stay only upon the posting of adequate security.’”) (quoting Slip N’ Slide Records, 

Inc. v. TVT Records, LLC, No. 05-21113, 
2007 WL 1098751
 (S.D. Fla. Apr. 8, 2007); Lewis v. 
United Joint Venture, No. 1:07-cv-639, 
2009 WL 1654600
 (W.D. Mich. June 10, 2009); Avirgan 
v. Hull, 
125 F.R.D. 185, 187
 (S.D. Fla. 1989); Wright & Miller, § 2905 & n.18 (stating that “the 
bond requirement will not be waived solely on the basis that it will pose a severe financial hardship 
on the appellant unless some other form of security is offered” and citing cases in the footnote). 
    Moreover, Defendants make no showing that the relevant factors described above weigh 
in  favor  of  their  request  to  waive  the  bond  requirement.  For  example,  Defendants  leave 
unaddressed any concerns about the complexity of the collection process, and the Trustee has 
reasonably explained why efforts at collection are unlikely to be simple. Pl.’s Opp’n 4–6, Dkt. 

No. 315; Decl. of Igor Margulyan ¶ 3 & Ex. A, Dkt. No. 316. Further, Defendants do not address 
how the amount of time required to resolve the appeal supports waiver and the record provides no 
basis for the Court to have confidence in the availability of funds to pay the judgment. Indeed, 
Defendants  have  gone  to  demonstrate  the  opposite.  While  this  may  ultimately  mean  that 
Defendants are correct that the Trustee “cannot squeeze blood from a stone,” Defs.’ Mem. 13, they 
provide no reason why that reality should allow them to obtain a stay of execution of the judgment 
without posting a supersedeas bond.                                       
    Mr. Stevanovich also argues that he “always has the option to declare personal bankruptcy 
if the Trustee attempts to enforce the judgment against him,” and “[d]oing so would trigger an 
automatic stay under 
11 U.S.C. § 362
 . . . leaving the Trustee as an unsecured creditor of a 
dischargeable judgment debt.” Defs.’ Mem. 12. However, nothing before the Court suggests 
Mr. Stevanovich has filed for personal bankruptcy, nor has he stated that he intends to do so. This 
argument essentially asks the Court to adopt a bankruptcy stay without requiring Mr. Stevanovich 
to actually engage in the bankruptcy process.                             

    Finally, the Court finds the alternative security proposed by Defendants—the Master 
Funds’  remaining  ownership  interests  in  two  private  companies  and  Mr. Stevanovich’s  art 
collection—are insufficient to provide any security for the Trustee’s ability to collect if the 
Judgment is affirmed on appeal. Eckerberg v. Inter-State Studio & Publ’g Co., No. 14-4176-CV-
C-MJW, 
2016 WL 9459301
, at *1 (W.D. Mo. Mar. 28, 2016) (“A bond for a nominal amount does 
nothing to serve the rational of Fed. R. Civ. P. 62(d) and the purpose of supersedeas bonds—to 
protect the Plaintiff’s interests in exchange for the delay in executing the judgment.”). 

ORDER

    For the foregoing reasons, IT IS HEREBY ORDERED that Defendants’ Motion for Stay 

of Enforcement of Judgment (Dkt. No. 309) is DENIED.                      

Date: July 28, 2025             s/Katherine Menendez                     
                                Katherine Menendez                       
                                United States District Judge             

Reference

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