Texas Appeal (Supersedeas) Bonds

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Texas Supersedeas (Appeal) Bonds

Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Texas appeal bond needs.

What Are They?

Civil cases heard in Texas courts often result in a judgment against a defendant that involves paying monetary damages to the plaintiff or turning contested property over to the plaintiff. Sometimes the defendant will appeal that decision, but not always for the right reasons.

Some defendants file an appeal as a way to delay having to pay a judgment. Others believe they can introduce new evidence or challenge the truthfulness of testimony given in the original trial. But most appeals are unsuccessful, because the only legal grounds for an appeal is a procedural error that compromised the defendant’s right to a fair trial.

Texas courts require an appeal bond (also known as a supersedeas bond) as a way to deter frivolous appeals that clog up the court calendar and ensure the payment of the judgment if the appeal is unsuccessful.

Who Needs Them?

Any defendant appealing a previous court ruling is required to provide a Texas appeal bond at the time the appeal is filed. The court will determine the required amount of the bond based on the damages awarded in the judgment.

For a monetary award, the required bond amount is 100% of the compensatory damages plus estimated interest that the monetary damages would earn during the time that the case is under appeal, as well as court costs and legal fees. In an unsuccessful appeal, the defendant typically is required to pay the plaintiff’s legal fees. If the award is for real property, the court will determine the required bond amount based on the value of that property.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

How Do They Work?

In selling a Texas appeal bond to a defendant appealing a court decision, the surety bond company is guaranteeing that the judgment will be paid if the court rules against the defendant.

If the defendant loses the appeal or the court dismisses the appeal without hearing it, the defendant must satisfy the original judgment. If the defendant fails to do so, the court holds the surety company liable for paying the judgment amount to the plaintiff.

Surety companies know that most appeals are unsuccessful and therefore typically require appeal bonds to be fully collateralized to avoid being held liable. (Applicants with very strong financials may be able to get approved with lesser collateral, or even none at all). When the appellate court rules against the defendant and the defendant does not satisfy the judgment, the surety will pay the judgment amount using the collateral the defendant put up when the Texas appeal bond was purchased.

What Do They Cost?

Because Texas appeal bonds are typically fully collateralized, the premium will be on the lower end of the premium scale (1 to 1.5%). With uncollateralized deals, the premium rate may be in the 2-3% rate.

This type of bond is considered to be risky, so the surety will look closely at the details of the case and the defendant’s overall financial strength to determine the premium rate and collateral requirement.

Get a Quote

Our surety bond professionals will do their best to get you the Texas appeal bond you need at a competitive rate.