Surety Bond Quarterly - Winter 2015 - (Page 20)
BY JEFFREY M. FRANK
BY oMAR J. HARB
FOR PARTIES ENGAGEd in litigation,
court bonds are often a useful tool.
Because there is such a variety of
these bonds, it is often difficult to
know the proper name and purpose of each of them. This article will
provide a brief explanation of the primary types of court bonds that are
available, along with a few useful tips
for producers and underwriters.
Appeal and supersedeas bonds
The most common types of court
bonds are appeal bonds and supersedeas bonds. There is often confusion
between these two types of bonds,
the terms of which are improperly
An appeal bond covers the opposing party's court costs if the appeal
is unsuccessful. Any party can
bring an appeal after a final judgment in civil litigation. The specific
BY JESSICA L. WYNN
rules regarding the appeal and the
costs covered vary from jurisdiction to jurisdiction and from state
court to federal court.
The court will determine the
penal sum of the appeal bond.
Because damages are usually limited to court costs, such as filing
fees, transcripts, etc., attorneys'
fees are generally not covered
unless the appeal involves a specific statute providing for fees.
The producer should gain a working understanding of the law in his
or her jurisdiction and advise the
surety to ascertain the relevant law
and to seek proper guidance when
underwriting the account.
The supersedeas bond guarantees the successful trial court litigant that it will have a source of
collection after the appeal. When
a party prevails in the trial court
surety BoNd Quarterly | WINTER 2015
and obtains a judgment against its
opponent, the opponent may want
to appeal that decision. In addition,
the judgment debtor does not want
the plaintiff to collect on the judgment while the appeal is pending.
In order to put the collection
efforts on hold, the judgment
debtor appealing the decision
(appellant) must obtain a stay of
enforcement. To obtain the stay, the
appellant will have to file a motion
with the court and then post the
bond. If the court grants the stay,
the court will determine the amount
of the bond. The amount of the
bond is usually around 125 percent
of the judgment amount to account
for costs, interest, and other damages that might arise during the
course of the appeal.
Because the appellant has
already lost in the trial court, the
surety is taking on a substantial
Table of Contents for the Digital Edition of Surety Bond Quarterly - Winter 2015
NASBP Upcoming Meetings & Events
2015-2016 Executive Committee
From the CEO - Never Forget Your Latin: Ignorantia Juris Non Excusat
Practical Insights: What You Need to Know - Unlicensed Contractors A Threat to Their Sureties
Hot Topics in Federal Government Contract Compliance
Fraud Schemes and Related Controls in the Construction Industry
Unravelling the Mystery of Court Bonds
NASBP Attorney Advisory Council Participates in NASBP Regional Meetings
Public-Private Partnership Projects
Mining the Value of the NASBP Member Network
Index to Advertisers
Surety Bond Quarterly - Winter 2015