Court Bonds

The Importance of Appeal Bonds


If you lose a court case and are ordered to pay money to the winning party, an appeal bond can enable you to defer payment while you pursue your case in an appellate court.

Staying Execution While Pending Appeal

If you decide to appeal a court ruling, the court will likely require you to obtain an appeal bond, sometimes known as a supersedeas bond or an undertaking, in order to secure your right to appeal. Importantly, an appeal bond can prevent the winning party—the creditor—from enforcing payment while the appeal is pending.

As explained in Forbes

What if a judgment is entered against a debtor, but the debtor initiates an appeal of that judgment: Is the judgment still enforceable despite the appeal? In most circumstances, it is — the judgment is in fact fully enforceable although the debtor has taken an appeal.

To prevent the creditor from enforcing the judgment during the pendency of the appeal, the debtor will usually have to post an appellate bond, sometimes known as a supersedeas bond, for the amount of the judgment plus some amount to cover the creditor’s attorneys fees and costs on appeal….

Obtaining An Appeal Bond

An appeal bond is a type of surety bond—it places money or assets in holding while the case is being judged by an appellate court, guaranteeing that the initial judgment will be honored if the appeal ultimately fails. To defer enforcement of the payment obligation under the judgment, courts generally seek the prompt posting of an appeal bond.

Appeal bonds can be obtained quickly, easily and directly at Colonial Surety Company. There is no middleman or broker involved—Colonial’s modern online system means you can get a quote for an appeal or supersedeas bond immediately and, upon approval, simply print it out or e-file it instantly. Get Started Right Here Now.

The Consequences of Not Obtaining an Appeal Bond

Without an appeal bond, the defendant can be required to pay the plaintiff (winner) the amount of money awarded in the original judgment, pending the appeal. Later, even if the appeal is won, there is no guarantee that the defendant’s money will be returned. As Jones Day explains:

A plaintiff may have taken steps to make himself judgment-proofduring the pendency of the appeal. After being vindicated in the court of appeals, a defendant could nonetheless find that it cannot get its money back. That is not a happy situation. The appeal bond allows a defendant to avoid these problems. From the plaintiffs perspective, the appeal bond ensures that, if the trial judgment is affirmed on appeal, money will be available to him at the conclusion of the appellate process, which could be years down the road.

It is important to obtain appeal bonds from a quality and financially secure company. Incorporated since 1930, Colonial Surety Company is an A (Excellent) rated insurance company by A.M. Best. An expert in the field, Colonial is Treasury listed and licensed and admitted in all U.S. states and territories.

Obtain An Appeal Bond Here.