What is an Appeal Bond? A Comprehensive Legal Overview
Definition & Meaning
An appeal bond is a type of surety bond that a party must post when they wish to appeal a final judgment in a legal case. This bond serves as a financial guarantee to ensure that the appellant (the party appealing) can cover the judgment amount if they lose the appeal. The requirement for an appeal bond varies by state and is often enforced to prevent a party from dissipating assets to avoid paying the judgment. By requiring this bond, the court aims to protect the interests of the plaintiff and ensure that any judgment can be enforced, even if the appellant becomes insolvent during the appeal process.
Legal Use & context
Appeal bonds are primarily used in civil cases, particularly in disputes involving monetary judgments. They are essential in ensuring that a plaintiff can collect on a judgment if the appeal fails. The bond must typically be filed with the court to perfect the appeal, and failure to do so may result in the judgment being deemed final and enforceable. Users can often manage this process themselves with the help of legal templates available through services like US Legal Forms.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company is ordered to pay $100,000 in damages to a former employee. If the company wishes to appeal the judgment, it may be required to post an appeal bond of $150,000 to cover the judgment amount and any potential interest during the appeal process.
Example 2: A homeowner is involved in a legal dispute over property damages. After losing the case, they decide to appeal. They must secure an appeal bond to ensure that the plaintiff can collect the awarded damages if the appeal does not succeed. (hypothetical example)