It is not very uncommon for a person to lose a lawsuit in the court of law due to juridical errors and is a victim of unfavorable monetary judgment. For such cases, the state of California gives the right to a person who has lost a lawsuit involving a money judgment to file an appeal in the superior courts after he posts a Defendant Court Appeal Bond or California Appeal Bond.
What is a Defendant Court Appeal Bond?
A Defendant appeal bond needs to be submitted in case of civil matters, if an appellant wants to point out and appeal against a monetary judgment which he deems unfavorable. There is a guarantee that in case of a unsuccessful appeal by the appellant, the judgment, including all other charges, will be paid to the plaintiff. There are 3 parties to a defendant court appeal bond, namely- the principal (defendant), the obligee (the court), the surety (the insurance company which issues and guarantees the payment of surety bond as required by the obligee if the appeal is lost by the defendant).
How to secure the bond?
A defendant court appeal bond or California Appeal Bond can be collateralized or secured in two ways which are as follows:
1) The surety company is given the entire cash amount which belongs to the judgment. Payment of premium on an annual basis and some additional amounts is also required.
2) By providing an ILOC which is issued by a bank and the surety company takes premiums, annually.
How much does it cost?
The court has the full discretion in determining the appellant’s bond amount. In California, the amount of a bond for appeal is a 150 times the judgment amount. The bond premium is typically 1% to 2% of the bond amount (varying from state to state). The bond for appeal also covers other court costs and fees.