An Appeal bond, also known as a supersedeas bond, is a type of surety bond which is required when appealing a judgment to a higher court. It guarantees that the appealing party (the appellant) will cover all costs of the initial judgment if the appeal is not successful.
Involves three (3) parties. They include:
Obligee – the party requesting the bond, whether person or business
Principal – the plaintiff appealing the judgment
Surety bond company – underwriting the bond and serving as a fiduciary
Appeal bonds require that the plaintiff post at least 100% collateral of the amount of the initial judgment. Sometimes this percentage is even higher, as it may include interest and court costs associated with the appeal.
The full amount is required for collateral, so that plaintiffs will think twice before filing an appeal. This way, plaintiffs who abuse the appeals process simply to buy time, or delay payment, will be discouraged from appealing.
If the plaintiff’s appeal fails, or they file bankruptcy during the appeal process, the obligee is compensated by the collateral posted upfront by the principal.
Completing our application allows the underwriters at our office to provide you with a specific quote for the exact bond you need. After you submit our online application, we will respond and get the process going immediately!