California Appeal Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your California appeal bond needs.
What Are They?
A California appeal bond is a type of surety bond required by a court at any level of the state’s judicial system. An appeal bond (also known as a supersedeas bond) is required when appealing a court’s decision in a civil case involving monetary damages.
The purpose of the bond is to ensure that the defendant will pay the damages to the plaintiff if the appeal is denied. Enforcement of the original judgment and all collection activities will cease until there has been a decision on the appeal.
Who Needs Them?
The party appealing a court’s ruling in a civil case must purchase an appeal bond in an amount that is 1 ½ times the amount of the monetary damages awarded to the plaintiff. The bond is most often fully collateralized in the form of a cashier’s check or irrevocable letter of credit. This being said, if the principal has a strong balance sheet, the bonds will sometimes be written with partial or no collateral.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
If you’ve lost a civil case and have been ordered to pay damages to the plaintiff, you may believe you have grounds to appeal that ruling. Bear in mind that an appellate court will look only at legal and procedural issues, not at the credibility of witnesses or new evidence. An appeal is not a retrial.
If the court does allow you to file an appeal, the appeal bond that you furnish will need to remain in place until the appeal process is concluded, which could be months or even a year or more. At the end of that time, if the court upholds the original judgment, you’ll be required to pay the damages awarded to the plaintiff, accrued interest, and legal fees as well. The surety will pay the plaintiff for you, and any amount left over will be returned to you.
For example, a $100,000 damage award would require an appeal bond in the amount of $150,000. By the time the court decides to uphold the original judgment, interest, expenses, and fees have added another $15,000 to the amount to be paid out of the collateral established when the bond was purchased. The surety would pay out $115,000, leaving a balance of $35,000 to be returned to the defendant.
What Do They Cost?
Appeal bonds are mostly written on a fully collateralized basis, which eliminates most risk. This being said, companies which are very well capitalized may qualify for partial or no collateral bond arrangements.
The premium cost for an appeal bond is typically a range of 1-3% of the required bond amount, depending on the principal’s capital base and whether or not collateral is required.
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At Surety Bond Professionals, our experienced agents can get you the California appeal bond you need with the most competitive terms possible.