• August 13, 2018

What You Need to Know About Supersedeas Bonds

What You Need to Know About Supersedeas Bonds

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A supersedeas bond is one of the most common appeals bonds regarding monetary judgements. A judge may choose to require a supersedeas bond when a party appeals a judgement (this may be a statutory requirement, based on the court rules in your state). These bonds act as a financial guarantee that the prevailing party of the judgment will have a recourse should the adverse party not pay.

Are Supersedeas Bonds Mandatory?

Not necessarily. The court rules and standard procedures will change from state to state, and it is typically a statutory requirement, but a judge can mandate that a supersedeas bond must be presented, but in most cases you will find that a judge requires a supersedeas bond when the appeal is made. A party can also request a bond, as well.

How to Obtain a Supersedeas Bond

Obtaining a supersedeas bond doesn’t have to be difficult, so long as you are prepared and provide an agent with all the necessary information. With all types of appeals bonds, timing is important. When a judge mandates that an appeal bond be posted, there is usually a time limit that is set for you to obtain one, which can complicate the process. Failure to obtain a bond within this timeframe means risking losing the appeal outright.

If you think you will need a supersedeas bond during your case, it’s best to get out ahead of it and get started with the underwriting process right away. Contact a surety bond agency to help you obtain a bond. It’s important to work with an agency because supersedeas bonds can be complex to write. Agents will know what you need based on your case and ensure the bond provides the necessary coverage.

What to Do if You Run Out of Time

Sometimes the underwriting process can tie up a bond. If this happens, be prepared to go back to the court and ask for an extension. Judges will often give you more time if you ask for it.

Other Tips for Supersedeas Bonds

  • If a judgement is made against you, make sure to file an appeal and apply for a supersedeas bonds bond right away. Some attorneys will quickly move to collect on a judgement for their clients, and a supersedeas bond can help put that collection on hold while the appeal is considered.
  • Indemnity or collateral may be required for the bond. If it is, it’s important to understand the steps you need to take to procure them from the required organization. Ask your surety agent about indemnity or collateral when you apply for a bond.
  • Make sure the supersedeas bond is discharged and released once the case is resolved. It’s best to work with a surety agent to get everything worked out in advance.

 

Apply for a Supersedeas or Any Other Appeals Bond Today. Contact The Patrick J. Thomas Agency to Get Started.

 

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.