• August 6, 2025
  • Posted By:hmvreeland
  • Category:Appeal Bond

Paperwork with a credit report showing a high score.

If you’re knee-deep in civil litigation and planning to appeal a judgment in California, you’ve probably heard you’ll need an appeal surety bond. So what is that, exactly?

In plain terms, an appeal surety bond in California is a kind of financial promise to the court. It says, “If I lose this appeal, I’ll pay what I owe.” In exchange, the court puts a hold on enforcing the original judgment while your appeal winds its way through the system.

So if you’re an attorney, or someone getting ready to file an appeal, this post is for you. We’re going to break down what an appeal surety bond is, what the court expects, and, most importantly, what you need to qualify for one.

Understanding the Basics of an Appeal Surety Bond

Before we dive into the paperwork and qualifications, let’s cover the basics.

What It Is

Think of it as court-ordered reassurance. The bond ensures the other side won’t get stiffed if your appeal doesn’t work out. If you lose, the bond kicks in to make sure the judgment gets paid.

Who Needs One

Anyone appealing a monetary judgment in a civil case usually needs one. It’s your ticket to hit the pause button on collection actions while you fight it out in court.

Who Issues It

Not the court. A licensed surety bond provider, like H.M. Vreeland, does the issuing.

Tri-Party Structure

Three parties are always involved. You (the appellant) are the Principal. The court or the judgment creditor is the Obligee. And the bond provider is the Surety. Everyone’s got a role, and the bond ties it all together.

Key Requirements to Qualify

Now let’s talk qualifications. Because just asking for a bond doesn’t mean you’re getting one. Surety companies are cautious, we’re on the hook financially if you don’t pay. So here’s what you (or your client) need to bring to the table.

Strong Financials and Net Worth

First up: your financial situation.

The surety will look at:

  • Audited financials (yes, audited, not a spreadsheet you made last night).
  • Balance sheets.
  • Liquidity ratios.
  • Assets vs. liabilities.

Why? Because if the appeal fails, we need to know you can pay.

Pro tip for attorneys: Prep your clients early. Financials take time to collect, especially if you’re dealing with year-end closeouts or audits.

Collateral (Required in Most Cases)

Not everyone walks in with pristine financials. That’s where collateral comes in.

It could be:

  • Cash (the gold standard).
  • An Irrevocable Letter of Credit from a bank.
  • Real estate

Bond Amount Calculation: It’s Not Just the Judgment

This trips people up all the time.

Let’s say the judgment is $500,000. You might assume that’s your bond amount. Nope.

It’s 150% of the judgment amount. Why? Because it needs to cover the full judgement, plus interest, court costs, and potential delays.

Tip for legal teams: Review the appellate court’s rules before you estimate. Each jurisdiction can vary.

Signed Indemnity Agreement

Here’s the legal fine print, but it’s non-negotiable.

You’ll have to sign a general indemnity agreement. That means if the surety has to pay out, you agree to pay us back.

Corporate appellants? Heads up: the surety might want personal guarantees from the business owners too. This isn’t about trust, it’s about risk.

Background Checks and Legal Disclosures

We’ll run a background check. Not the “how many parking tickets” kind. We’re talking:

  • Litigation history
  • Prior bankruptcies
  • Existing liens
  • Any bond claims in the past

Disclosure tip: Don’t hide anything. Full transparency usually means a faster approval. Surprises? Not so much.

Red Flags That Can Delay or Derail Qualification

Here’s where things can get dicey:

  • Poor credit scores (especially for private individuals)
  • Ongoing litigation that might result in large liabilities
  • Outdated or incomplete financials
  • Past claims on other bonds or bankruptcy history

The fix? Start early. Talk to your bond agent (that’s us at H.M. Vreeland). We’ve helped a lot of people overcome these exact issues.

Preparing for Bond Approval the Right Way – H.M. Vreeland

Start early, plan ahead, and let your legal team lead with confidence.

Ready to begin? Contact H.M. Vreeland online today or give us a call at 707-773-4564 for a confidential consultation. We’re here to help, fast, reliable, experienced.