When attorneys start thinking about a pending legal case, they’re usually thinking about the evidence they have on their side, legal precedent, or the credibility of their witnesses. It’s pretty safe to say they’re not worrying about the amount of an appeal & supersedeas surety bond. But failing to take that bond into account can put a lawyer and his client into dire straits.
Many times, the first thing you think about when not getting a desired verdict in a case is how to appeal that case. But what do you do if you have an adverse verdict and want to stay the matter pending appeal? It’s especially difficult, as the bond cost must be obtained from a surety company within weeks of the initial judgment in order to appeal and stay execution on the judgment by the other party
The most famous case of an appeal & supersedeas bond proving too difficult to obtain was in the appeal in Pennzoil v. Texaco, where the verdict was a whopping $10.5 billion. Texaco was unable to obtain the appeal bond and had to file for bankruptcy protection as the judge required Texaco to post the entire amount of the judgment plus interest to appeal. The two sides ultimately settled for $3 billion in lieu of an actual appeal as the bankruptcy forced a stay and therefore, ultimately, a settlement.
For smaller companies, even much smaller bonds can be difficult to obtain, leading to similar situations. Taking steps to be prepared to post an appeal or supersedeas bond is best practices for any party in a pending case. Learn more about appeal bonds.
But what is the easy way to obtain an appeal or supersedeas bond in order to appeal?
Colonial Surety offers the direct and digital way to obtain an appeal or supersedeas bond. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!