A Successful Appeal—and Recovery of Costs Incurred
When an appeals court overturns a judgment, the appellant may be able to recover appeal bond premiums. Consider the case of TCL Communication’s successful appeal of a $110 million judgment won by Ericsson earlier this year.
The Case In a Nutshell
As reported by Lexology:
In April 2020, the US Court of Appeals for the Federal Circuit overturned a $110m judgment against TCL by invalidating Ericsson’s patent under section 101. Upon returning to the Eastern District of Texas, TCL recovered an additional $2.35m in costs incurred before both courts. Magistrate Judge Payne, considered the various costs to determine the amount TCL should recover after its successful appeal.
The Supersedeas Bond
When TCL appealed, the court required a supersedeas bond of $132,240,250 to stay execution on the $110 million judgment. To secure the bond TCL paid over $2 million in premiums.
The key benefit of filing a supersedeas bond, known as an appeal bond, is to secure a stay from collection on a judgment until the appeal is decided. Importantly, the initial judgment is subject to collection until the party pursuing an appeal posts such a bond. Creditors are free to attempt to collect on a judgment even if the party they are collecting from is attempting to appeal the lower court judgment. But, the appeal or supersedeas bond prevents the creditor from enforcing the judgment during the pendency of the appeal.
When appellants (and their lawyers) are ordered to secure a supersedeas or appeal bond, they must do so efficiently to meet the requirements and deadlines set by the court. Given its long history and expertise, Colonial Surety Company is a go
to for lawyers across the country. In business since 1930, Colonial Surety Company is licensed in all 50 states and US territories. There is no middleman or broker involved—bonds are issued directly by Colonial. Via a modern online system, quotes for an appeal or supersedeas bond can be provided immediately. Following approval, the bond can be print it out instantly. Get Started Right Here Now!
The District Court’s Finding for TCL
In the case of TCL seeking to recoup premiums paid to secure the supersedeas bond, the District Court reviewed the facts, and as reported by Lexology:
The court found that TCL’s supersedeas bond premiums were “reasonably necessary” because Ericsson insisted that TCL post a full bond and rejected TCL’s alternatives. The Court noted also that Ericsson did not itself provide any alternatives and there was no suggestion in the record that Ericsson would have accepted other guarantees from TCL.
The court awarded TCL $2,248,983.48 in supersedeas bond premiums and $505 in uncontested appellate docketing fees, but did not award $757,473.39 in corporate guarantor fees and financing costs. It ultimately awarded TCL fees and costs totaling $2,354,108.93.
Interesting To Know
Ericsson petitioned for an “en banc rehearing” in the case, but, in September,
The US Court of Appeals for the Federal Circuit denied the petition, which solidified the reversal of the $110m judgment against TCL Communication.
Remember, whether your case is big or small, Colonial Surety Company can assist with the supersedeas or appeal bonds required by the court. Colonial offers direct and digital service. Colonial is the insurance company. We make it easy to obtain your bond efficiently. The steps are easy—get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Once approved, print or e-file your bond from your office. It’s that simple!
Obtain A Supersedeas or Appeal Bond With Colonial.