What is an Appeal Bond?
An appeal bond is a type of surety bond used during the appeals process of a civil case. The appeal bond protects the party that won the judgement by guaranteeing payment of the monetary judgment to them in the event that the other party makes an appeal. Appeal bonds are generally required by the court and serve to discourage frivolous appeals that are filed simply to postpone payment of a judgement.
They are also known as supersedeas bonds.
How Appeal Bonds Work
When a party loses a case, and a judgement is made against them, they may appeal that judgement on various grounds. In many cases, the courts will require the appealing party to obtain an appeal bond in order for the appeal to be made. The bond, which is generally worth the amount of the judgement (but can be higher), is used as a means of protection for the party that won the judgement.
When an appeal is made, the case moves to a higher court for them to rule on the case. Appeals can sometimes take a long time. In this time, there is a chance that the appealing party (the party that the judgement was made against) can go bankrupt. If this occurs, they will not have money to pay the monetary sum to the party that won the case.
Depending on the type of appeal, the more common rule is that appeal bonds are required by Federal Rule of Appellate Procedure 7 and must either be paid to the court or a qualified third party. These types of bonds also provide protection to the courts because they prevent frivolous and unnecessary appeals from tying up court resources.
Obtaining Appeal Bonds in Minnesota
If you have a case in Minnesota that requires an appeal bond, contact the surety bond experts at The Patrick J. Thomas Agency today. We work with several A-rated sureties that provide bonds to our customers.