Appeal bonds, also known as supersedeas bonds, exist to ensure that if you ever lose a case in court as a defendant, you’ll be given a second chance to gain the support of the legal system. Fighting a court case can itself be an incredibly stressful and expensive situation, hence why appeal bonds are important to give you another chance should the situation become dire and against your favor. However, do keep in mind that there will be costs associated with a surety court bond and it’s worth contacting experts such as Pinnacle before taking any action.
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What is an appellate bond?
Also known as a supersedeas bond, appeal bond or a surety court bond, is a type of surety bond that protects individuals who are pursuing action through the courts. It can also be described as a court cost bond that is designed to guarantee any payments related to the court case. This can include payments to authorities, legal fees or any money that is awarded to the winning party.
Most appellate bonds are made to hold the defendant financially liable if the appeal isn’t successful. If you lose your appeal in court and the higher court upholds the same decision given by a lower court, then you will be required to pay the judgement, interest, attorney fees and court costs. These costs can quickly add up to a very large sum of money so it’s important to be prepared for the possibility of a loss before you proceed with an appeal bond.
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What does an appeal bond cost?
An appellate bond cost will often be based on the amount that was stated in the original judgement amount. It can increase to a much higher amount than this baseline and will often be influenced by the decisions made in the court. However, you are not required to pay the entire bond in full. Instead, you will pay a percentage of the total bond amount and then pay collateral on top of the bond premium.
Collateral is usually an asset that the lender will accept on loan. However, if you’re unable to pay the bond, the collateral will be seized in order to recover any losses suffered by the surety. The collateral may also be considered the full penal total of the bond itself. Since appeal bonds can be quite risky for the surety, they often need to be fully collateralized. However, exceptions to this do exist. For instance, if your appeal is successful then no action is taken against the bond. However, if your appeal is not successful, then the bond will remain in effect until all the costs, interests and your judgement have been settled. There are some situations where you can be approved for an appeal bond without collateral, such as being able to demonstrate significant financial strength.
In some cases, an insurance company may be held accountable for the payment of an appeal bond. This often happens when a company is being sued and has a huge level of liability insurance. Many of these liability contracts have terms that require them to pay the cost of an appeal bond. However, the language used likely won’t explicitly state that it has to be an appeal bond or supersedeas bond, but courts in the past have ruled that a bond is a necessary payment for defense.
This is often used when a business or organization is the defendant instead of a single individual. In this situation, an appeal bond can be worth millions of dollars. However, do keep in mind that the language used in the terms may force you to still be responsible for the collateral and the surety. As a result, it’s always best to take a closer look at the terms and conditions to see if an insurance company will be able to pay for your appeal bond.
If you’re unsure about the costs of an appeal bond, then don’t hesitate to contact us. We’ll help you estimate the costs with a firm quote so that you have a better example of how much you can expect to pay for an appeal bond.
Getting an appeal bond
In order to become bonded, you’ll need to get assistance from a professional surety bond company that has experience dealing with appeal bonds. Do keep in mind that a lot of information will be required in order for the surety to consider your request. For instance, your history may be taken into consideration, and questions may be asked in an evaluation that will help to determine if your character is the right match for this type of bond.
You should also remember that if you are approved for a bond, you likely won’t need to pay the full amount up front. In most cases, you’ll only need to pay the bond premium to secure it. Be aware that a supersedeas bond will need a collateral payment as well.
When you’ve decided that you will be posting an appeal bond, it’s important to try and do it as soon as possible, especially if the court decision has already been made. Because of this, it’s worth speaking to several sureties if you feel that you are currently the losing party. This is because you only have a 14-day period after a decision is made before the judgement is executed. Do keep in mind that a stay of execution is not automatically offered when you file an appeal, and deadlines can vary depending on the case itself. In short, make sure you appeal as quickly as possible and post a supersedeas bond as soon as you can.
Contact Pinnacle today
If you’d like to learn more about appellate bonds or have questions and concerns, don’t hesitate to get in touch with Pinnacle today. We’ll offer you fast and exceptional service to help you through the application process and also help you clear up any concerns or questions that you may have. A member of our team will be able to assist you and find the perfect solution for your needs.
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