Idaho Supersedeas Bonds
What is an Idaho Supersedeas Bond?
While a client can file an appeal without a supersedeas bond, the bond is the legal mechanism required to stay the enforcement of a money judgment while the case is on appeal. In Idaho, per Rules of Civil Procedure Rule 62, there is no automatic stay on entry of judgment. “Execution or other proceedings to enforce a judgment may issue immediately on the entry of judgment, unless the court in its discretion and on such conditions for the security of the adverse party as are proper, otherwise directs.”
An Idaho supersedeas bond ensures that the appellee will be paid all sums found to be due and owing within 30 days of the Supreme Court issuing its final decision (remittitur). For the bond to be deemed sufficient, it must be issued by a fidelity, surety, guaranty, title or trust company authorized to do business in the State of Idaho and to be a surety on undertakings and bonds.
If you’re an attorney handling your client’s case in Idaho, here are the bond amount requirements for your client to secure a supersedeas bond.
Idaho Supersedeas Bond Amount Requirements
Idaho Appellate Rule 13(b)(15) and Idaho Code § 13-202 outline the specific requirements for the bond amount. Here are several highlights to be aware of:
- The “Plus 36%” Standard: For a money judgment, the bond or cash deposit must be in the amount of the judgment or order, plus 36% of that amount. This additional 36% is intended to cover anticipated interest, costs, and damages during the appeal.
- Punitive Damages Cap: Under Idaho Code § 13-202(2), if a judgment includes punitive damages, the bond requirement is waived for the portion of punitive damages exceeding $1 million. For example, a $5 million punitive award would only require a bond for the first $1 million.
- Waiver for Good Cause: The court has the discretion to waive the bond requirement entirely for “good cause shown.”
- Rescission of Waiver: If the judgment creditor proves by a preponderance of the evidence that the appellant is purposefully dissipating or diverting assets outside the U.S. jurisdiction, any waiver may be rescinded and the full bond requirement reinstated.
- Objection Timeline: Any party objecting to the sufficiency of a bond must file a written motion with the district court within 21 days of the bond being filed, or the objection is waived.
The judgment debtor can also stay the enforcement of judgment through a cash deposit with the court. However, by choosing the supersedeas bond route, clients can often keep their capital liquid and put it to better use while the surety company provides the necessary guarantee to the court.
Idaho Appellate Rule 13(b)(15)
(15) Stay execution or enforcement of a money judgment upon the posting of a cash deposit or supersedeas bond by a fidelity, surety, guaranty, title or trust company authorized to do business in the state and to be a surety on undertakings and bonds, either of which must be in the amount of the judgment or order, plus 36% of such amount. Provided, an agreement not to execute on the judgment made pursuant to Rule 16(b) may be filed in lieu of such bond or cash deposit. Any bond filed pursuant to this rule shall state that the company issuing or executing the same agrees to pay on behalf of the appellant all sums found to be due and owing by the appellant by reason of the outcome of the appeal, within 30 days of the filing of the remittitur from the Supreme Court, up to the full amount of the bond or undertaking. A copy of the bond, agreement not to execute, or notification of a cash deposit shall be served upon all parties to the appeal at the time of the application for the stay of execution. Any objection to the sufficiency of a cash deposit or bond posted under this rule shall be waived unless a written objection is made in the form of a motion and filed with the district court within 21 days of the filing of such bond or cash deposit. The district court shall rule upon such objection in the same manner as any other motion under the I.R.C.P. If the district court stays execution or enforcement of a money judgment upon the posting of a cash deposit or supersedeas bond, the court may, upon motion or application, cause or direct any judgment lien filed to be released. If the appellate court has vacated any money judgment and remanded only for a determination of the amount of the judgment, the district court may continue or modify the amount of any cash deposit or supersedeas bond posted in connection with the appeal. Any cash deposit may be applied to the judgment upon filing of the remittitur from the Supreme Court. If a party obtains a judgment for punitive damages, the supersedeas bond or cash deposit requirements shall be waived as to that portion of the punitive damages that exceeds one million dollars ($1,000,000) if the party or parties found liable seek a stay of enforcement of the judgment during the appeal. In addition, the supersedeas bond or cash deposit requirements may be waived in any action for good cause shown. However, if the judgment creditor proves by a preponderance of the evidence that a party bringing an appeal, for whom the supersedeas bond or cash deposit requirement has been waived, is purposefully dissipating its assets or diverting assets outside the jurisdiction of the United States courts, waiver may be rescinded and the bond or cash deposit requirements may be reinstated for the full amount of the judgment.
*This does not constitute legal advice, please read our disclaimer.
Idaho Code § 13-202
13-202. STAY OF PROCEEDINGS PENDING APPEAL. (1) Upon and after an appeal of a judgment or order of the district court in a civil action, the judgment or order appealed from, or any other order or proceeding in the action may be stayed by the district court or the supreme court as provided by rule of the supreme court.
(2) If a plaintiff in a civil action obtains a judgment for punitive damages, the supersedeas bond or cash deposit requirements shall be waived as to that portion of the punitive damages that exceeds one million dollars ($1,000,000) if the party or parties found liable seek a stay of enforcement of the judgment during the appeal.
(3) If the plaintiff proves by a preponderance of the evidence that a party bringing an appeal, for whom the supersedeas bond or cash deposit requirement has been waived, is purposefully dissipating its assets or diverting assets outside the jurisdiction of the United States courts, waiver may be rescinded and the bond or cash deposit requirements may be reinstated for the full amount of the judgment.
(4) The supersedeas bond or cash deposit requirements may also be waived in any action for good cause shown as provided by rule of the supreme court.
*This does not constitute legal advice, please read our disclaimer.
Who Needs Supersedeas Bonds in Idaho State Cases?
In Idaho courts, supersedeas bonds are typically required to stay the enforcement of a money judgment while an appellant seeks to overturn a judgment or order. Except for judgments against most public entities, most monetary judgments require a supersedeas bond to prevent execution of the judgment during the appeals process.
Here are a few common cases that require appeal bonds in California:
- Contract Disputes
- Class Action Lawsuits
- Personal Injury Lawsuits
- Property Disagreements
- Business Litigation
- Employment Law Disputes
- Product Liability Claims
- Intellectual Property Conflicts with Monetary Awards
- Toxic Tort Litigation
- Domestic Relations Cases involving property division, alimony, or child support
Idaho Supersedeas Bonds Underwriting Requirements
While supersedeas bonds are technically insurance products issued by surety companies, they function more like a financial guarantee whereby the surety is guaranteeing to pay the judgment to the appellee up to the bond amount if the judgment is not satisfied by the appellant. Unlike insurance, however, the appellant has to indemnify or repay the surety if the surety pays the judgment. Consequently, supersedeas bonds are generally considered an extension of credit and underwritten more like bank loans.
Considering that most appeals do not result in a reversal of the judgment or order, there is a strong likelihood that the surety providing the supersedeas bond will receive a claim. As a result of this high probability, surety companies generally require collateral for the full bond amount.
However, there are exceptions to the collateral requirement, such as if an appellant has a significant net worth and liquid assets relative to the bond amount. Publicly traded companies, banks, insurers, large private firms, and high-net-worth individuals may meet these requirements, and not need to post collateral. (Find out if your client may qualify for an appeal bond without collateral, here.)
Common forms of collateral include:
- Cash: This is the quickest and simplest way to secure an appeal bond.
- Bank Letters of Credit: These are a written guarantee from a bank to the surety that promises payment of the required amount upon demand by the surety.
- Real Estate: This could include both residential properties (single-family and multi-family) and commercial properties (office, industrial, or retail).
- Marketable Securities: Non-retirement brokerage accounts holding stocks and bonds that are pledged to a surety company.
FAQs
How Much are the Premium Rates for Idaho Supersedeas Bonds?
The cost of an Idaho supersedeas bond is determined by the premium rate, which typically ranges from 0.30% to 4% of the total bond amount. The exact premium rate will depend on several factors, such as:
- The size of the bond requirement
- The type of collateral provided if required
- The financial strength of the appellant relative to the bond amount, if the bond is being considered without collateral
For example, if the supersedeas bond is required for $8,000,000 and the premium rate is set at 0.75%, the bond premium would be $60,000. It’s important to know that surety companies charge premiums for supersedeas bonds annually until their liability under the bond has been released. The premium for the first year is considered fully earned once the bond is issued, and any renewal premiums for subsequent years are prorated if the bond is exonerated midterm.
Best Practices for Posting a Supersedeas Bond Through a Surety Bond Provider
Securing a supersedeas bond in Idaho can be a complex process. Following best practices and having an experienced appellate bond specialist working with your client can help simplify this process and ensure a smooth and efficient experience:
- Contact a surety bond agent early. This advantage helps the client explore all options and ensure they can file the supersedeas bond without delay.
- Ensure attorney involvement. Attorneys are critical in confirming the bond amount based on the jurisdiction’s requirements and parts of the judgment being bonded, updating the surety company on the deadline to file the bond, and reviewing the bond form to ensure it conforms with State or local rules.
- Choose the right surety bond agent. You and your client can choose the right surety bond agent by interviewing multiple professionals and choosing one with a strong track record of experience and who specializes in Idaho supersedeas bonds.
Read our guide, “The Biggest Mistakes Made with Appeal Bonds,” to learn more.
Why Choose CSBA for Your Client's Idaho Supersedeas Bonds?
If your client needs to stay enforcement of an Idaho judgment, they need a professional surety agent who can use a wide variety of collateral options and who has access to the right surety companies.
A Legacy of Expertise & Trust
Since 1984, CSBA has provided first-class service through our expertise in the appellate process, underwriting requirements, and the time frames required to secure a bond before the filing deadline. With our combined experience of 110 years, our surety bond professionals anticipate potential setbacks and take proactive steps to tailor options unique to your client’s financial situation.
Exclusive Surety Insurer Access & Creative Solutions
At CSBA, we leverage our extensive network of over 30 surety insurers for clients seeking to secure an Idaho supersedeas bond. Our long-standing relationships with top-tier surety companies allow us to handle bond amounts of all sizes, whether it’s a $1 million supersedeas bond for a private individual or a $1 billion supersedeas bond for a publicly traded corporation.
With access to exclusive and semi-exclusive sureties we offer:
- Creative collateral solutions tailored to each client’s financial profile.
- Expedited underwriting to ensure a streamlined bonding process.
- Comprehensive support and guidance to attorneys and their clients throughout the supersedeas bond process.
Our specialized expertise and direct surety relationships set us apart, making CSBA the trusted choice to attorneys and their clients for supersedeas bonds in Idaho cases.
How Long Does It Take to Get a Supersedeas Bond?
The time it takes to put an Idaho supersedeas bond in place depends on various factors. For example, when collateral is not required, a bond can be approved and issued in as little as 24 hours in the most straightforward cases. However, the process can vary significantly when collateral is involved, and the time then depends on the type of collateral that is being used. For instance, cash collateral can be posted in just a few days, while securing real estate collateral can take 30 to 60 days, depending on the type and number of properties being posted.
Steps to Apply for a Supersedeas Bond
- Contact a supersedeas bond specialist to review your client’s bond requirements and start the process.
- CSBA will discuss the various options available with you and your client.
- Submit the following documents:
- Application
- Court complaint
- Judgment
- Notice of appeal
- CPA Audited Year-end Company Financial Statement if the client may be a candidate to qualify for an appeal bond without collateral.
- CSBA will work on obtaining competitive terms for your client with the admitted surety insurers we work with. CSBA will outline the supersedeas bond approval for your client and facilitate securing the collateral.
While the process can typically take a few weeks, CSBA’s expertise allows us to expedite the process and minimize any delays in finalizing the issuance of the supersedeas bond.
Get a Free Quote for Your Client's Idaho Supersedeas Bond Today
Filing a supersedeas bond comes with strict deadlines, and securing an Idaho supersedeas bond requires a knowledgeable and responsive surety agent who understands the complexities of the court requirements. At CSBA, we specialize exclusively in appeal and civil litigation bonds, ensuring a fast approval process so you can focus on your case.