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Appeal Surety Bonds

(Also known as: Supersedeas Bond, Defendants Appeal Bond, Appellants Bond)

There are 94 district courts in America that are organized into 12 different circuits or regions, each with its own Court of Appeals. Granting appeals is an important check on the power of the courts, but that doesn't mean filling an appeal is an effortless process. You may need an appeal surety bond before the courts agree to hear your plea for justice.

What is an Appeal Bond?

Also known as a supersedeas bond, an Appeal Bond serves to protect the court from frivolous appeals that can cost the court time and money. The Appeal Bond is required of a defendant who is appealing a court's judgment. The bond allows for the plaintiff to delay payment of a judgment until the appeal has been decided. The bond amount is typically the amount of the judgment but may also include interest. The bond is required to be in place while an appeal is being decided.

How Does an Appeal Surety Bond Work?

Like all types of surety bonds, appeal bonds essentially guarantee that you will meet your financial or legal obligations. In this case, you need a bond to ensure you will pay for judgements levied against you. If you fail to pay, the court is allowed to file a claim against the bond. The surety company that issues the bond will then investigate the claim, and if they determine it's valid, they will pay the court the amount you owe using collateral you typically have to provide when obtaining the bond.

Who Should Get an Appeal Surety Bond?

Some appeals don't require surety bonds. If you do need one, the court will inform you early in the appeals process. At that point, your appeal typically can't move forward until you can prove you have a bond, so it's in your best interest to find a surety company like Viking Bond Service that can issue the bond you need as quickly as possible.

What are the Parties in an Appeal Surety Bond?

The bonded party is one of three equal parties:

• Principal - You are the principal, which is another term for bonded party. It's your responsibility to obtain the bond, renew it for as long as possible, and pay for any claims filed against the bond. In exchange, the court submits to hear your appeal.
• Obligee - The court is the obligee, meaning the beneficiary of the bond. As the beneficiary, they're allowed to file claims against the bond to recover compensation owed by the principal. Having this financial guarantee makes the courts more comfortable hearing your appeal.
• Surety - The company that issues the supersedeas bond is called the surety. The surety will also investigate claims filed against the bond and settle those claims using the principal's collateral.

How Much Does an Appeal Surety Bond Cost?

Typically, the size of your appeal bond is the same size as the amount of the judgement you're appealing. But the actual cost of the bond is only a small percentage of the total, usually around 2%. That means for a $50,000 bond, the premium may only cost $1,000. However, due to the low likelihood of winning an appeals case, the bonds connected to that case usually have to be collateralized, meaning you have to put up collateral (cash or property) equal to the value of the bond. Since you must prove you can cover the entire cost of the bond upfront, the price of the bond is based less on credit, like most other surety bonds, and more on the specifics of your appeal.

How are the Claims Handled for Appeal Surety Bonds?

If you fail to compensate the courts for judgements levied against you, the courts may file a claim against the bond. After conducting an investigation, the surety will pay the obligee the amount you owe, which may mean turning over the collateral you put up. The surety is financially responsible to the court for the amount of the bond. However, you the principal are responsible to the surety for amounts paid to settle claims. The collateral may be used as compensation to the surety if found necessary.

How to Apply for an Appeal Surety Bond?

The typical items required to process an appeal bond are the Original Complaint, the Original Judgment, the Notice of Appeal, a Financial Statement, along with a credit report that we pull and the bond application. Often, appeal bonds are collateralized.

Request an Appeal Bond Quote

Complete an online application when you're ready to get the bond process started. If you would like more information first, please call us at 1-888-278-7389 or fill out the contact form on this page. The team at Viking Bond Service is happy to help from beginning to end.