Supersedeas Bond Florida

Written April 16th, 2012 by
Categories: Articles, Articles on Florida Bonds, Court Surety Blog, Surety Bonds
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The Florida Supreme Court hears appeals for all Florida districts.

Supersedeas bonds, as those who have been reading the Jurisco surety bond blog regularly will know, is one of the most common type of surety bonds in Florida. We have discussed the supersedeas bond topic often, focusing on state requirements, bond cost, differing local mandates, and the general necessity of the court bond.  This is one of our major topics to keep our clients informed of any and all changes to supersedeas bond legislation and responsibilities. Today we continue this trend by focusing on appeal bonds in Florida.

What does a supersedeas bond do in Florida?

A supersedeas bond is a type of defendants bond in Florida. When the defendant appeals the court’s judgment, most typically a money judgment, they will use a bond to satisfy their requirement to pay. While lawyers file appeals and set up new hearings, the supersedeas bond stays the judgment and proves to the court that the judgment will be honored without false delay.

Do all Florida courts require an appeal bond to be used?

Any defendants wishing to appeal a money judgment will be required to post an appeal bond or can post the same amount with the registry of the court. While both parties have a right to appeal, the judgment can only be stayed with an appeal bond. It shows the court the judgment will be paid in full and may even cover court cost and interest.

What is the bond amount?

The surety bond cost depends on the bond amount required by the Florida statute. Businesses find this to be a hindrance when the money judgments against them are in the million plus range. As the cost of the judgments increase the bond premium will decrease. At Jurisco the premium amount is one percent of the amount with collateral or two percent without collateral (if qualified). Contacting us today is the fastest way to find out how much the supersedeas bond amount will be.

California Personal Representative Bond

Written April 13th, 2012 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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A last and will and testament can name a personal representative for the estate and waive the requirement for an administrator bond.

A personal representative bond is required by the state of California to protect the interest of the deceased’s estate, its heirs and those parties who are owed money. The responsibility of a personal representative (commonly referred to as an administrator or executor in California) is taken seriously by the courts. Courts mandate the surety bond as a form of protection for all parties. While the surety bond protects the heirs and creditors of the estate, it is also a protection for the personal representative to ensure she/he fulfills their duties responsibly.

Being Appointed As A Personal Representative

On average, the deceased will name the personal representative in their will. However, if this does not occur the responsibility could be entrusted to the closest living relative or even to a financial institution (like a bank) that will oversee the account. A California judge may appoint a person to the position after a probate examiner reviews the petition and estate information.

Being named as a personal representative of an estate is a big deal. The court holds the overseer to all his or her actions in order to protect heirs and creditors of the estate.

The duties of a personal representative, executor or administrator in California include the following:

  • Notifying Inheritors
  • File Will in Probate Court
  • Pay Taxes
  • Distribute Property
  • Open Bank Account for Estate
  • Settle Debts

All of these tasks and more, including the day-to-day details, rest on the shoulders of an executor. Given the amount of responsibility an administrator holds it is necessary for the personal representative bond to fully cover these actions.

Waiving Administrator Bond Requirements

There are situations where the California requirement for a personal representative bond can be waived. For instance, the deceased could explicitly state there is no need for a bond. Another scenario is when all the heirs of an estate jointly decide to waive the mandate.

Even if the will and the heirs waive the bond requirement a California judge may still mandate the administrator use a probate bond to protect the estate. This is normally the case when the executor lives outside of the state.

Executor Bond Cost

California executor bond statute explains how a personal representative bond amount is determined:

8482.  (a) The court in its discretion may fix the amount of the bond, but the amount of the bond shall be not more than the sum of:

(1) The estimated value of the personal property.

(2) The probable annual gross income of the estate.

(3) If independent administration is granted as to real property,

the estimated value of the decedent’s interest in the real property.

(b) Notwithstanding subdivision (a), if the bond is given by an admitted surety insurer, the court may establish a fixed minimum amount for the bond, based on the minimum premium required by the admitted surety insurer.

(c) If the bond is given by personal sureties, the amount of the bond shall be twice the amount fixed by the court under subdivision (a).

(d) Before confirming a sale of real property the court shall require such additional bond as may be proper, not exceeding the maximum requirements of this section, treating the expected proceeds of the sale as personal property.

The executor bond lasts as long as it takes to formally settle an estate. Sometimes this can be achieved in as little as eight months while other estates take years to settle.  The longevity of the personal representative bond will impact the cost of the surety. Make sure to discuss this point with your Jurisco representative when you contact them about personal representative bonds.

Idaho Replevin Bond

Written April 12th, 2012 by
Categories: Articles, Articles on Idaho Bonds, Court Surety Blog, Surety Bonds
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Lawmakers determine surety bond requirements at the State Capitol in Boise, ID.

A replevin bond is one of the most common types of surety bonds used by plaintiffs in Idaho court cases. Before moving forward in the bond process it’s important to know when replevin actions can be taken and why. Today, our surety bond blog discusses replevin bonds in Idaho, their requirements, associated costs, and how to best obtain bonding with minimum delay.

Idaho Replevin Bond Requirements

People in Boise, Meridian, Pocatello and Idaho Falls may hear replevin bonds referred to as sequestration or claim and delivery bonds. No matter what they are called, they all three do the same thing. When a plaintiff wishes to levy property before a court has issued a judgment in the case they must guarantee the levy isn’t wrongful. In order to satisfy this requirement, Idaho courts accept a replevin bond to protect the defendant from financial harm.

To properly levy property during a court proceeding, a replevin bond must be in place before any property is taken. Furthermore, the plaintiff may be required to coordinate with the local Sheriff’s Department to handle any repossession. Should the replevin be deemed wrongful, the surety bond fully protects the financial interest of the defendant.

Controlling Cost of Court Bond

One issue clients are always concerned with is the cost. There isn’t a “flat rate” for replevin bonds in Idaho. The value of the property being levied, severity of the action and even the credit of the plaintiff influence each bond amount. In some cases, the bond amount could be double the value of the property while in others it could be a percentage.

The court determines the bond amount to its discretion of what will fully protect the defendant. The reason a replevin bond is required by the court is to protect the defendant from wrongful replevy. This will cause fluctuations in cost, but doesn’t have to limit a client’s use of replevin.

Using A Bond Correctly

Often times it can be unclear as to what the state statute wants a client to achieve in terms of bonding. To minimize confusion and delay in receiving proper bonding it is imperative to work with a trusted surety bond company. We recommend doing some homework into different companies: what are their areas of expertise? Are they easy to communicate with? Are they knowledgeable about Idaho bond requirements?You can contact Jurisco to talk to a surety bond expert about replevin bonds or even as us what to look for in a surety bond company. We are here to answer your questions and make sure the replevin bond is written correctly and fully covers the defendant and the actions of the plaintiff.

 

Mississippi Appeal Bond

Written April 10th, 2012 by
Categories: Articles, Articles on Mississippi Bonds, Court Surety Blog, Surety Bonds
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Mississippi appeal cour places certain requirements on appeal bonds for the appellant.

An appeal bond, like other types of surety bonds, is part of the pre-trial planning in Mississippi. Attorneys know that planning for an appeal bond doesn’t happen the day of the verdict, but weeks, if not months, beforehand. When presenting a case, the plaintiff and defendant can only do so much. The final judgment rests with the judge and the jury. Should this result in a judgment either party finds wrong they can appeal the decision.

The appellant has the legal recourse to appeal the decision, but that does not remove their responsibility to the judgment. One reason attorneys in Mississippi use supersedeas bonds so often is to stay the execution of the judgment during the appeal process. Without using surety bonds the defendant must immediately settle the judgment or they could find themselves in contempt of court.

Mississippi Requirements for Supersedeas Bonds

Every state has requirements for court bonds; when they can be used, coverage amounts, legal wording et al. There may be differences within the state as well. It is never safe to assume that the bonding requirements in Tupelo, MS will be the same for Jackson, MS. It’s imperative that all I’s are dotted and every t crossed per local and state statute from Columbus to Biloxi, MS.

Here is an excerpt from the Mississippi appeal bond statute:

“SEC. 77-1-47. Appeal bonds; supersedeas bonds.

Appeals from any final finding, order or judgment of the commission shall be taken and perfected by the filing of a bond in the sum of Five Hundred Dollars ($500.00) with two (2) sureties, or with a surety company qualified to do business in Mississippi as the surety, conditioned to pay the cost of such appeal.  Said bond shall be approved by the chairman or secretary of the commission, or by the judge of the court to which such appeal is taken in case the chairman or secretary of the commission refuses to approve a proper bond tendered to them within the time limited for taking appeals.  The commission may grant a supersedeas bond on any appeal, in such penalty and with such surety thereon as it may deem sufficient, and may, during the pendency of any appeal, at any time, require the increase of any such supersedeas bond or additional securities thereon. “

Cost for Appeal Bonds

The cost for appeal bonds has been an issue for several states. As money judgments increase to the hundreds of millions of dollars, many defendants (both companies and individuals) are finding it financially difficult to afford the appeal process. This certainly brings up legitimate concerns of whether or not justice is truly being done.

The appeal bond amount may simply be a small percentage of the judgment or it could be required to cover the full cost of the judgment plus any interest and court cost. Understanding state requirements will help keep this cost down and limit the defendant’s expenses.

Contacting a Bond Expert

To discuss appeal bonds, and their associated cost, contact Jurisco today by email or at 1-800-274-2663. By working with a bond expert the defendant can rest easy knowing that their appeal bond is being handled appropriately and as quickly as possible.

Delaware Lis Pendens Bond

Written April 9th, 2012 by
Categories: Articles, Articles on Delaware Bonds, Court Surety Blog, Surety Bonds
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Lis pendens affects all types of property, even those in foreclosure proceedings. The amount of houses affected by lis pendens has grown so much that ForeclosureData.com has a page dedicated solely to lis pendens listings in Delaware. So why and how does lis pendens affect the sale of a property? Today that’s what we will discuss. As always, if you have something you’d like to add to the conversation leave a comment below or send us an email.

What is Lis Pendens?

Latin for “suit pending” lis pendens secures a plaintiff’s right to specific real property. For instance, if a defendant is selling a house in Brandywine, DE and the plaintiff believes he or she has a right to that property (or to a portion of the proceeds from the sale) they would use a lis pendens to block the sale of the property.

Bond Requirements

Anyone can file a lis pendens against real property without a bond, however if the defendant feels the lien is wrongful they may demand that the plaintiff post a bond.  The court recognizes the plaintiff’s right to protect their interest, but that doesn’t overshadow the defendant’s rights. Delaware requires all plaintiffs to use lis pendens bonds to cover any type of financial loss the defendant may face should the lis pendens be deemed unlawful or wrongful.

The bond proves to the court that the plaintiff is not filing the lis pendens in bad faith. Once the bond is approved then the property holder, as well as those involved in the selling/buying process, will be notified of the lis pendens action.

Here’s a look at Delaware statue concerning lis pendens (please note that mandates may differ within the state so please ask your Jurisco bonding expert about your particular area be it Dover, Greater Newark or Wilmington, DE):

(a) In any action instituted in any court of this State having civil jurisdiction or in the United States District Court for the District of Delaware, any party asserting a claim, the object of which is to affect the title to, or enforce an equitable lien on, real estate may, after filing of such claim, file in the office of the recorder of deeds of any county in which all or any part of the affected real estate is situate a written notice of the pendency of the action, which shall be under oath, and shall set forth:

(1) The court in which the action was brought, the caption of the action and the civil action number;

(2) The object of the action or the affirmative relief sought;

(3) A legal description sufficient to identify the property affected; and

(4) A designation of the names of each party against whom the notice is directed to be indexed.

(b) No notice of pendency shall be filed under this chapter:

(1) On a claim relating to real estate which, if sustained, would entitle the party to recovery solely of money or money damages; or

(2) To enforce a mechanic’s lien or to foreclose upon a mortgage at law, which actions shall continue to be governed by the notice procedures of this Code specifically applicable thereto.

67 Del. Laws, c. 59, § 1.;

To learn more about lis pendens bond and its associated cost please contact Jurisco today.


Replevin Bond California

Written March 30th, 2012 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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A California replevin bond is a resource for a plaintiff wishing to use the replevin process before a judgment is made.

A replevin may be the only legal action available to a plaintiff in order to levy property before a judgment is made. In order to take this action, California state law requires a plaintiff secure a replevin bond to cover the value of the property, as well as court costs. This surety bond works as an insurance policy so the defendant isn’t harmed financially, and that the court is protected in case the levy was unnecessary.

Writ of Replevin involves personal property, not acreage or houses, but items like automobiles and pieces of artwork. It can also be used to retrieve a pet after a breakup. According to the American Dog Magazine, couples, I mean, singles, often use this legal recourse when an ex- wrongfully takes the dog. As dogs are achieving higher protection by courts, the writ of replevin may be used to recover custody of an animal before a judge makes a ruling. A replevin bond is required in this case as well.

What spurs the use of replevin by a plaintiff varies, however, the requirement for a replevin bond remains constant.  Also known as sequestration or claim and delivery bonds, a replevin bond guarantees the defendant can collect all damages if the sequestration is wrongful. The court does not forget that responsibility regardless of the type of property – even if it is a 10-year-old Labrador.

To talk about your needs for a surety bond, and how Jurisco can help, contact us today. You could email us or call 800-274-2663. One of our replevin bond experts will discuss cost, California mandates, and explain the application process.

Texas Supersedeas Bond

Written March 29th, 2012 by
Categories: Articles, Articles on Texas Bonds, Court Surety Blog, Surety Bonds
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A supersedeas bond covers the cost of a money judgment and court fees, in order to stay a judgment during an appeal process. Without using a surety bond, a defendant is required to immediately settle the judgment with the plaintiff. Clients may be hopeful that they will not need the appeal process, some refuse to prepare for its inevitability, but a supersedeas bond should be a priority.

Applying, being approved, and actually writing the supersedeas bond takes time. Since the judgment is effective as soon as it is issued, a client in Texas needs to plan ahead. Obtaining a supersedeas bond (this may be referred to as an appeal bond in certain Texas cities) should be done before a ruling is made. This way the defendant is able to immediately stay the judgment and move forward with their appeal.

Why are supersedeas bonds required in Texas?

When a judge and/or jury finds in favor of the plaintiff and grants a money judgment against the defendant, the court expects that order to be carried out dutifully. However, the court also understands and respects the defendant’s right to appeal or protest the decision. While this legal right is upheld, it does not overshadow the responsibility the defendant has to the initial court ruling.

A supersedeas bond works like a financial guarantee covering the full amount of the judgment plus all related court cost.  Since the bond stays the execution of the judgment the defendant can carry on the appeal without having to worry about paying the full settlement to the judgment holder.

This may seem like a cheaper way out for the defendant. Certainly there have been cases where individuals and businesses have used the appeal process to delay payment. But requiring the bond insures the ruling will be upheld and payment made.

Cost of Surety Bond

The amount of a supersedeas bond in Texas is easy to compute: if the judgment is under $40,000.00 the bond must be double the judgment amount.  If the judgment is over $40,000.00 the bond must be 150%. For individuals this amount could be in the thousands of dollars, while major corporations face million dollar payouts. This means the cost is going to fluctuate from case to case, as well as being dependent on local regulations.

To receive a price for a supersedeas bond and to discuss your bonding needs, please contact Jurisco today.

Bad Credit and Surety Bonds

Written March 28th, 2012 by
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Bad credit can affect surety bond including requiring collateral and increasing the bond cost.  As more people deal with unpaid credit card bills, past due mortgage payments, and even late car payments, the concern over bad credit is rising. Like job applicants, surety bond applicants may find their credit score doesn’t work in their favor.  Financial administrators can clear up low credit scores, but Jurisco experts can help minimize the score’s impact on surety bonds right now.

Bad credit scores can negatively affect the surety bond cost.

Clients with good history could see bond cost as low as between one and four percent of the total bond amount. However, those with bad credit could see that range widen between five and 20 percent. State regulations (contact a Jurisco representative to discuss your state mandates) also play a role in how credit is used to determine cost. A good credit score generally equals a lower bond fee, but Jurisco is able to keep rates low for most applicants with bad credit as well.

Several factors influence the bond cost with bad credit being just one unit to measure risk. When a bonding company reviews the application for a replevin bond, executor bond or even an appeal bond, they consider the risk the bond presents. An administrator bond, for instance, covers the financial health of an estate, and the actions of an administrator to handle that estate without error. Often times, estates can be worth millions of dollars, which poses more of a risk than a replevin bond involving a $5,000 car.

How a surety bond company manages the risk involved determines the cost of the bond. Since there are different scenarios, which could raise the cost of a bond, there is more than one way to level it out. Jurisco can complete the bond quickly and keep the cost to a minimum. For more information, call us at 800-274-2663 to find out how bad credit will affect surety bond cost. 

Florida Lawmakers Want to Cap Appeal Bond Amounts

Written March 27th, 2012 by
Categories: Articles, Articles on Florida Bonds, Court Surety Blog, Surety Bonds
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Florida State Senator Tom Harman is behind legislation calling for a cap on appeal bonds in Florida.

Appeal bonds can be so costly for businesses, lawmakers are looking to find ways to cap appeal bond amounts. The cost of an appeal bond is a percentage of the amount of the bond, which is based on the money judgment. When tobacco companies face hundreds of millions of dollars in judgments, the cost for an appeal bond is going to increase. Some businesses make the convincing argument that the cost to appeal limits the ability to appeal a ruling.

Florida put a $50 million hard cap on appeal bonds, for companies with more than 400 employees, during the 2006 legislative session. State Senator Tom Harman is working on legislation to decrease this cap with new legislation.  Harman says Senate Bill 1478 would make the following changes:

“Current law requires defendants to post 150% of a judgment to have an appeal heard. In an era of billion-dollar verdicts, businesses are forced to settle rather than go into bankruptcy fighting a judgment they believe is in error.  SB 1478 would place a $25 million dollar cap on the amount a defendant must post in order to stay a judgment and appeal a verdict. For small businesses the requirement is limited to $1 million.”

Big tobacco companies have been lobbying for such changes even before they were hit with 9,000 lawsuits in 2009. And while lobbying may conjure up negative images of people with money getting their way, there is some validity to this concern. Over the past two decades, the amount of money judgment awarded against companies, both big and small, have increased substantially. If the process of appeal is limited because of bond cost, that issue should be discussed.

What do you think about placing a cap on appeal bonds? Leave a comment on the blog or email us to tell us your thoughts about appeal bonds in Florida.

Executor Bond Texas

Written March 26th, 2012 by
Categories: Articles, Articles on Texas Bonds, Court Surety Blog, Surety Bonds
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Texas courts require executor bonds to protect the estate and its beneficiaries and creditors.

A surety bond definition may not be adequate to understand a bond fully and why it is needed. Take an executor bond for example. Here is a standard surety bond definition:

“Personal Representative Bonds, also referred to as Administrator or Executor bonds) guarantee the faithful performance of the Personal Representative in their duties to handle an estate.”

While this gives an overview of why the bond is required, we know our clients may want more background on executor bonds. Today, we will look at executor bonds and its state regulations in Texas.

Executor bonds are mandated by the state of Texas for whoever serves as administrator or personal representative of a decedent’s estate. The executor is charged with properly settling an estate and protecting its assets. Other responsibilities including notifying all beneficiaries and heirs named in the will, handling a creditor’s claim to an estate, paying taxes, and filing all appropriate forms. The court requires a surety bond to protect the estate and its creditors in the event these actions are not carried out dutifully.

The presiding judge will set the amount of the surety bond. Typically a hearing is held to discuss the amount of cash necessary to operate the estate (business, farm), how much revenue the estate is expected to draw within one year (dividends, interest), the value of assets (stocks, securities), as well as estimated debts (money owed by ward). Based on that amount the judge determines how much the bond amount should be to protect all creditors.

Texas law states that all executors must be bonded, however, this law is not absolute. There is no need for a bond when either a) an administrator puts up cash collateral or b) the need for a bond is waived by the decedent in a will.

Texas executor bond state statute states:

“§ 195. WHEN NO BOND REQUIRED.  (a) By Will.  Whenever any  will probated in a Texas court directs that no bond or security be required of the person or persons named as executors, the court finding that such person or persons are qualified, letters  testamentary shall be issued to the persons so named, without requirement of bond.
(b)  Corporate Fiduciary Exempted From Bond. If a personal representative is a corporate fiduciary, as said term is defined in this Code, no bond shall be required.”

The presiding judge makes a final ruling on the necessity of an executor bond. Even if a will includes a provision claiming a bond is unnecessary, a judge may feel it is necessary to protect the full interest of the creditors of an estate.

One of the benefits of using a bond instead of cash is limiting expenses. With a bond, a client only has to pay a percentage of the bond amount, a minimum of $100. Alternatively, a client would have to prove he/she could financially cover the estimated value of the estate.  This could be difficult.  To discuss benefits of surety bonds and the cost of an executor bond further, contact Jurisco.

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