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appellate court makes a ruling and then only if the ruling is to affirm the judgment. A surety bond also replaces the need for collateral. The plaintiff, or party to whom the money judgment is awarded, is fully protected by the bond and ensured payment, that is if the appealing party can afford the bond.
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Obtaining a supersedeas bond may appear to be judicial red tape; however, it serves the best interest of the defendant and plaintiff. The appellant uses a supersedeas bond to stay the execution of the judgment, meaning the appellant does not have to pay the full amount of the judgment until the
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could have similar concerns. An appeal takes time – in some cases many years. After the case is finally decided, whichever party wins will perhaps be more "out of pocket" from its costs. Also time will have passed, and the losing party may be
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Subsection (e) permits a trial court to enter orders preventing dissipation or transfer of assets to avoid satisfaction of the judgment, but not so as to prohibit use, transfer, conveyance, or dissipation of assets in the normal course of
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Rules of Civil
Appellate Procedure, Rule 7, provides that "except in cases involving custody of children", an appellant may obtain a stay on a lower court judgment and all other further proceedings by filing a supersedeas bond in the
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or merely a tactic to delay or avoid payment. This is known as a supersedeas (or "appeal") bond, and shows that they can and will cover the damages or fees awarded – including any additional costs of the appeal.
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Under subsection (c), if the judgment debtor shows that the amount of the security would cause "substantial economic harm", the trial court is required to lower it to an amount that would not cause such
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Under subsection (a), the amount of the bond must equal 1) the amount of compensatory damages awarded in the judgment, 2) interest for the estimated duration of the appeal, and 3) costs awarded in the
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The bond may not be – and often is not – the exact value of the ruling. In some cases it is significantly larger since it is intended to cover interest or other costs which may arise on appeal.
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Under subsection (b), notwithstanding the requirements of subsection (a), the security cannot exceed the lesser of 1) 50 percent of the judgment debtor's net worth or 2) USD$ 25 million.
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Therefore, it is often either a requirement of the law, or an order of the court, that prior to commencing its appeal processes, the losing party must provide a
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bond required of one who petitions to set aside a judgment or execution and from which the other party may be made whole if the action is unsuccessful.
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Subsection (d) allows an appellate court to review and modify the amount of security, but not to exceed the limitations above.
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or have used the time to hide assets or otherwise frustrate efforts to collect on the judgment if they lose their appeal.
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The amount and availability of a supersedeas bond depends on state regulations and case specifics.
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Not to be confused with writ of supersedeas, a writ which stays a previous court order.
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389:"The Delaware Constitution | Article IV. Judiciary | § 1. Creation of courts"
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482:"Types of Bail Bonds | Money, Surety, & Superseadeas | What To Know"
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A supersedeas bond is often paid in full – and may be handled via
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Description and range of reference information on appeal bonds
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496:"Texas Civil Practice and Remedies Code, Section 52.006"
403:"Rules of the Supreme Court of the State of Delaware"
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454:"Supersedeas Bonds And Money Judgment Appeals"
216:against the judgment. At this point, both the
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430:. Delaware Courts - State of Delaware.
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