- July 13, 2022
- Posted By:hmvreeland
- Category:Surety Bonds
Were you involved in a civil case and the judgment was in the opposing party’s favor? Do you plan to appeal against the judgment in a higher court? You may be required to obtain an appeal Surety bond. An appeal Surety bond in California guarantees the judgment will be paid if the underlying decision is upheld by the appeals court.
What Purpose Does an Appeal Surety Bond Serve?
Every citizen has the right to appeal a judgment in a higher court. Many people misuse this right to delay paying a judgment. Instead of honoring the court’s decision and paying the judgment, they file a frivolous appeal in a higher court, wasting the court’s resources.
Appeal bonds discourage this dishonest behavior as they protect courts against frivolous cases. To obtain an appeal bond, the defendant, in addition to paying the premium, should pledge collateral with the Surety. They are also required to pay the previous judgment in full if the court upholds the decision made by the lower court. This discourages litigants from filing frivolous appeals.
How Does an Appeal Bond Work?
If the defendant loses the case and refuses to pay the judgment, the plaintiff can file a claim against the bond. If the claim is found to be valid, the Surety settles it. It then recoups the amount plus interests and expenses from the Principal.
Is it Possible to Obtain an Appeal Bond Without Collateral?
Though Sureties usually require individuals and businesses to pledge collateral with them in order to obtain appeal bonds, they may agree to issue bonds to people and entities with a good financial standing without collateral.
Who Needs a Surety Bond?
Courts require defendants to obtain Surety appeal bonds in many, but not all, cases. If the court deems it necessary, it will instruct you to purchase a Surety appeal bond when you try to file an appeal.
Your attorney should be able to help you find out in advance whether you need a bond. Get a bond as soon as possible after the court instructs you to buy one as the appeals process won’t move until you prove to the court that you have a Surety bond that meets the conditions specified.
How to Obtain an Appeal Bond?
First and foremost, you need to choose a Surety company. Find a local company that can tailor the terms of the bond to meet the conditions specified by the court. Next, you will be asked to fill out and submit a bond application form along with the notice of appeal, original judgment, and bank statement. The Surety will determine your premium and request you to pledge collateral. After you complete all steps, the Surety company will issue a bond.