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Appeal Bond

Appeal Bond

What Is an Appeal Bond?

An appeal bond is an amount of money put in holding while an appeal is being settled. An appeal bond is supplied by the litigant who is appealing the lower court's judgment and is for the most part in the amount of the original judgment (however it very well may be more).

An appeal bond is likewise alluded to as a supersedeas bond.

Understanding an Appeal Bond

After a civil court ruling, the losing party can appeal by bringing the court case to the higher court. The higher court will just audit issues had a problem with in the lower court during the initial trial, not new evidence. On the off chance that the lower court requested the litigant to pay a judgment, they normally wouldn't need to concoct the money until the appeals interaction has been exhausted.

An appeal, be that as it may, could carve out opportunity to be ruled upon; now and again, an appeal could require years. During this time, the losing litigant should spend out-of-pocket costs to cover their legal fees and some other costs connected with the case. Since there is a possibility that the respondent might go [bankrupt](/chapter 11) when the case is ruled on, they are required to post a surety bond before the beginning of the appeals cycle.

The surety bond, known as an appeal bond, is required by the Federal Rule of Appellate Procedure 7. It must be paid to the court or an outsider to exhibit good faith and intent to focus on the last ruling on the off chance that the litigant loses.

The appeal bond likewise fills in as a safety net bond, which safeguards the court from trivial appeals or postponing strategies to stay away from payment as these exploitative activities cost the court time and money. For example, a respondent could file an appeal to slow down payment of a court-requested sum in the event that an appeal bond was not required. Likewise, by posting an appeal bond, the litigant guarantees that the original judgment against them will be paid assuming they lose the appeal.

Special Considerations

A losing respondent necessities an appeal bond, which is required by both federal and state courts, to secure their right to appeal an adverse judgment and remain the offended party's execution of that judgment. The most common way of appealing includes posting a full judgment as well as posting interest.

An appeal bond ought to be examined from the get-go in a case since the cost of this bond can be high, and respondents are required to post this bond half a month after the judgment. The bond amount could be altogether bigger than the value of the ruling since it is to be utilized to cover interest or different costs that might emerge during the appeal interaction.

The amount of the bond is represented by state regulations, which differ from one state to another. For instance, in the state of California, the appeal bond amount must be 150% of the judgment amount. A few states cap the maximum amount of an appeal bond. In Florida, for instance, the amount of an appeal bond is limited to something like $50 million for each litigant.

Notwithstanding an appeal bond premium, candidates must put up collateral worth 100% of the bond amount to fit the bill for an appeal bond. This collateral is put up with a surety company and is required due to the low probability of winning an appellate case. On the off chance that the litigant doesn't post an appeal bond in no less than about fourteen days after the lower court enters a judgment, the triumphant offended party can hold onto their property.

In the event that the appeal is fruitless, the bond is in effect until the judgment, and all accrued interest and any granted fees and costs are paid, which might require numerous years to settle. All things considered, payments have been settled, the court releases the bond, and the litigant is as of now not responsible for the judgment.


  • The amount of money required for the bond is often the genuine judgment plus interest and is held while the appeal is being discussed.
  • An appeal bond, or supersedeas bond, is a payment that a court expects from a litigant who is anticipating the appeal of a judgment.
  • The appeal bond is required as an indication of pure intentions that the judgment will be paid assuming the litigant loses, and to safeguard the triumphant party should the losing party fail during the appeals interaction.
  • The appeal bond is likewise used to limit pointless endeavors at an appeal, as the litigant actually needs to pay the judgment upfront as a bond, and may wind up paying all the more eventually due to interest, fees, legal counselors, and so on.