Western Lighting Corp., a Corporation v. Smoot-Holman Company, a Corporation

This appeal is from an adjudication of contempt. On July 17, 1964 the District Court enjoined appellant:

The injunction was served on Moses, appellant’s president, on that day, and he read it. An appeal was taken and a cash supersedeas bond in the sum of $1,500 was filed and approved on July 23. This effectively stayed the injunction. (Rule 62(d), F.R.Civ.P.). On July 27 appellee moved for an order increasing the amount of the bond and this motion was granted on August 7. The pertinent portion of the order reads:

No such bond was posted.

We think it clear that the injunction was stayed through August 13. The order does not expressly revoke the stay effected by the July 23 approval of the $1,500 bond. The language “will be stayed” cannot fairly be construed as a revocation of the existing stay. Rather, the purpose and effect of the order was to terminate the stay if the increased bond were not filed on or before August 13. It is equally clear, then, that after August 13, the injunction was in effect. Thus the order appealed from cannot stand unless appellant violated the injunction after August 13. The court found that it did, and its finding is fully supported. Stated most…