An appeal bond is required of a petitioner to set aside a judgment or execution from which the other party may be made whole if the action is unsuccessful. These bonds help protect the court from frivolous appeals that cost the court time and money. Appeals are always posted by the losing party in a court case.
Appeal bonds are regularly required of defendants and occasionally plaintiffs’ party to a civil suit to secure a higher court review. They are supplied by the appellant (plaintiff), who is appealing the court’s judgment and is usually in the amount of the original ruling (though it could be more). Appeal bonds are also known as supersedeas bonds or safety net bonds.
- Serve as a safety net bond, which protects the court
- Allow the court to stay judgments while cases are on appeal
- Guarantee the defendant’s original judgment against them will be paid if they lose appeal
- Are required by the Federal Rule of Appellate Procedure 7
- Must be paid to the court or a third party to demonstrate good faith
The amount of money required for the bond is often the actual judgment plus interest and is held while the appeal is debated. A paid assessment will protect the prevailing party if the losing party goes bankrupt during the appeal process. The appeal bond is also used to limit frivolous attempts in an appeal, as the appellant still has to pay the judgment upfront in the form of a bond, and might end up paying more ultimately, due to interest, fees, attorneys, etc.
At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover bond solutions for all types of bond cases ranging from ordinary to challenging. Contact us or call 248-349-6227 today.