How to Stay Execution of a Judgment: A Guide to Appeal & Supersedeas Bonds
If you have lost a civil court case and been ordered to pay a significant sum, the clock is already ticking. In most jurisdictions, a winning party can begin seizing assets or freezing bank accounts shortly after the final judgment is entered. To stop this process, you must obtain a stay of execution. The most common and effective way to do this is by posting an appeal bond (also known as a supersedeas bond).
What Does it Mean to “Stay Execution”?
A “stay” is a legal order that temporarily suspends the enforcement of a court judgment. As the Legal Information Institute at Cornell Law School explains: “Stays are often given pending an appeal….In a civil case, the party receiving the stay usually must obtain a bond as security for reimbursing the opposing party if the grounds for the stay turn out to be baseless or the party causes unnecessary delays.” By filing a notice of appeal and posting the required bond, the “judgment debtor” (the appellant) effectively hits the pause button on paying the awarded judgment while the higher court reviews the case. Without a stay, the “judgment creditor” (the winner) has a timely (even immediate) right to:
- Garnish wages or business revenue.
- Place liens on real estate.
- Seize funds directly from bank accounts.
Attorneys at Wade Litigation caution that not mere disagreement with a verdict does not necessarily make an appeal viable: “Simply feeling that the judge was biased or that the outcome was unfair isn’t enough—you must point to specific errors in the record that justify overturning or modifying the judgment.” For example, strong grounds to appeal usually fall into these categories:
- Legal Errors: If the trial judge applied the wrong legal standard, improperly admitted or excluded evidence, or made incorrect jury instructions, these could be valid appeal points.
- Abuse of Discretion: Judges have a lot of decision-making power. However, if their decision is so unreasonable that it shocks the conscience, it might be reversible.
- Insufficient Evidence: If the verdict is clearly against the weight of the evidence presented at trial, it might be challenged.
- Procedural Errors: Mistakes like failing to allow a fair trial process can form solid appeal grounds.
- Constitutional Violations: If your rights under the U.S. or California Constitution were violated during the trial, an appellate court could overturn the decision.
The Role of the Appeal or Supersedeas Bond
The term supersedeas literally means “you shall desist.” In the context of an appeal, this bond acts as a financial guarantee. It ensures that if the appellate court ultimately affirms the original decision, the funds are already secured and ready to be paid to the waiting creditor.
Why Courts Require Bonds
Courts don’t grant stays for free. They require security to protect the prevailing party from two major risks:
- Inflation and Interest: Appeals can take years; the bond covers the judgment plus accumulating interest.
- Dissipation of Assets: It prevents a defendant from spending or hiding their money during the long appellate process.
In addition to the clear protection these court bonds provide judgment creditors, appeal bonds help courts keep frivolous cases from clogging up the dockets. Appeal bonds also help the appellant and the attorney:
- For the Appellant: The bond preserves liquidity and business operations. Instead of losing a lump sum of cash immediately, the appealing party can use a surety bond to keep their capital working while the legal team fights the case. It also protects against the “judgment-proof” plaintiff—ensuring money doesn’t disappear into the hands of a winner who might not be able to pay it back if the appeal is ultimately won.
- For the Attorney: Ensuring a stay is in place is a critical component of professional due diligence. It allows the legal team to focus on the merits of the appeal without the distraction of ongoing collection battles or “post-judgment discovery” (where the creditor demands to see all your client’s financial records).
How to Secure an Appeal or Supersedeas Bond Quickly
When an appeal bond is needed, it’s essential to ensure that it precisely addresses all court specifications and to meet deadlines. Timing is everything. Federal and state rules often provide a very narrow window (frequently 30 days) to secure a stay before execution begins. Typically, courts set the bond amount at 100% to 125% of the judgment so as to account for interest and other costs. As the obligee, the court may set additional bond requirements, based on the case. With court requirements in hand, it’s best for the principal (appellant obtaining the bond) to work with an experienced, knowledgeable and direct surety company, like the U.S. Treasury Listed Colonial Surety Company.
At Colonial Surety Company, appeal and supersedeas bonds can be quoted online, and the flexible collateral options make it easy and speedy to complete the process. Once the bond is issued, it can be instantly printed or downloaded and filed with the court. The stay of execution is officially in effect when the court approves the bond.
Quote and Obtain Appeal and Supersedeas Bonds Here
Attorneys: Save time and gain efficiency every time a court bond, such as an appeal or supersedeas bond, is needed, simply by using Colonial Surety Company’s Partnership Account® for Attorneys. Sign up is quick–and free. Then, whenever you need a bond, just select it from your personal dashboard, send it directly to the client for completion and payment, and download, e-file or print the bond.
Colonial Surety Company’s court bonds include: appeal, supersedeas, injunction, replevin, receiver and more–and we have a full portfolio of fiduciary bonds too.
All the bonds you need for every case, are a few clicks away right here:
The Partnership Account® for Attorneys
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