Supersedeas | Appeal Bonds

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Supersedeas (Appeal) Bonds Explained

A supersedeas bond, which is often referred to as an appeal bond, is a kind of surety bond that is required in certain court cases. When an individual or an entity is appealing a judgment to a higher court, the bond ensures that the appellant will not evade financial responsibility for the initial court decision, if the appeal fails.

Surety bonds work like a contractual agreement between three parties. The principal is the entity that needs to post the bond, the appellant. The obligee in this case is the respective court. The surety is the bond provider that backs up the principal.

The appeal bond is one of the main types of court bonds. It guarantees the financial strength and trustworthiness of litigants appealing court judgments, protects courts from plaintiffs that break their financial obligations under the bond, and ensures compliance with court decisions.

Questions about Court Bonds/appeal Bonds

Who needs to obtain this bond?

A variety of individuals and entities might have to post a supersedeas bonds in relation with appealing a court decision to a higher authority. The appeal cannot be made before they fulfill this requirement. Both federal and state courts can require the posting of an appeal bond.

This prevents misuse of the appellate system and reduces the burden from fake or manipulative appeals. In case the appeal does not succeed, the appellant is thus guaranteed to pay the financial costs of the first court ruling.

Are there different types of supersedeas bonds?

There’s only one kind of supersedeas bond, so you don’t need to worry about choosing the right kind when obtaining it.

How much does the bonding cost?

The cost of an appeal bond is set on the basis of individual circumstances when a plaintiff brings a specific case to an appellate court.

Unlike the cost of other surety bonds, the supersedeas bond cost does not depend on the personal credit score of the bond applicant. Because it’s difficult to predict the decisions in court cases, appeal bonds are seen as high-risk. That’s why appellants have to pay at least 100% collateral, which is the initial judgment amount. Other costs and interest can increase this percentage as well.

The purpose of requiring a full collateral, is to discourage abuse of the appeals court system. If litigants just want to extend a judgment or avoid covering financial costs, the high price of making an appeal would persuade them against such a course of action. The collateral is also used to reimburse the court, without financial loss for the surety backing the plaintiff.

Besides the collateral, the plaintiff needs to pay a bond premium, a percentage of the surety bond amount. This amount depends on the specific court case and is usually equal to the financial costs set in the initial court judgment.

Can I get a supersedeas bond with bad credit?

Because of the particularity of supersedeas bonds, there are no special bonding markets for them. Getting an appeal bond is possible only with good finances, so there are no bad credit bonding options. In general, obtaining supersedeas bonds is more difficult and requires a higher financial responsibility on the side of the bond principal.

As supersedeas bonds are high-risk surety bonds, the minimum requirement for 100% collateral is in force. Appeal bond applicants should thus prepare to cover these costs to get bonded.

How do I get this bond?

In order to apply and buy your appeal bond, you need to do the following:

  1. Download and complete the application forms

  2. Fill them out and send them to [email protected] or fax them to (267)-362-4817.

For a detailed overview of the bonding process, make sure to review our How to Get Bonded page.

Have further questions? You can get in touch with our bonding experts by calling us at (877) 514-5146.

Apply for a free no-obligations quote on your supersedeas bond!

What happens in case of a bond claim?

A claim can be made against your supersedeas bond if you do not cover the costs on the initial court judgment, which has remained after the appeal that you brought. The collateral that you provided when getting bonded can be used to fulfill your financial responsibility to the court.

The costs on proven claims always remain the liability of the bonded party. Thus, when you obtain an appeal bond, it does not protect you, but rather guarantees you will abide by the decision of the court.

About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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