Texas Supersedeas Bond

March 29, 2013 by · Leave a Comment 

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.

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