Michigan Court Rules

What is a Michigan Appeal Bond?
An appeal bond in Michigan is a type of surety bond that allows the judgment debtor (often the defendant) to stay enforcement of a money judgment while they appeal. While filing an appeal without an appeal bond is possible, it would then allow the judgment creditor (often the plaintiff) to start the enforcement of the judgment unless the trial court grants a stay without a bond under MCR 3.604(L), MCR 7.209(E)(2)(b), or MCL 600.2605.
If the appeal is ultimately unsuccessful, the judgment creditor may then initiate a claim against the appeal bond. This allows the judgment creditor to recover the judgment amount from the surety in the event the judgment debtor fails to satisfy the judgment.
Michigan Appeal Bond Amount Requirements
Under Michigan Compiled Law, MCL 600.2607, the bond amount required to stay execution on a judgment during an appeal is determined by applicable court rules and statutory provisions. Michigan Court Rule (MCR) 7.108(B) states that to stay execution of a civil judgment or order, the appeal bond amount must be 1-1/4 times the judgment or order amount including any costs, interest, attorney fees, and sanctions assessed to the date of filing the bond.
However, per MCL 600.2607, the bond shall not exceed $25,000,000.00 regardless of the amount of the judgment.
Rule 7.108 Stay of Proceedings; Bond; Review
(A) General Provisions.
(1) A motion for bond or a stay pending appeal may not be filed in the circuit court unless such a motion was decided by the trial court. The motion must include a copy of the trial court’s opinion and order and a copy of the transcript of the hearing, unless its production has been waived.
(2) Except as otherwise provided by rule or law, the circuit court may amend the amount of bond, order an additional or different bond and set the amount, or require different or additional sureties. The circuit court may also remand a bond matter to the trial court. The circuit court may grant a stay of proceedings in the trial court or stay the effect or enforcement of any judgment or order of a trial court on terms the circuit court deems just.
(B) Civil Actions.
(1) Automatic Stay. Unless otherwise provided by rule, statute, or court order, an execution may not issue and proceedings may not be taken to enforce an order or judgment until expiration of the time for taking an appeal of right.
(2) Effect of Appeal. An appeal does not stay execution unless:
(a) the appellant files a bond in an amount not less than 1-1/4 times the amount of the judgment or order being enforced, including any costs, interest, attorney fees, and sanctions assessed to date of filing the bond. When the bond is filed, the judgment or order shall automatically be stayed pending entry of a final order under MCR 7.108(B)(4)(c) to stay enforcement of the judgment even though objections to the bond or surety may be filed, or
(b) the trial court grants a stay with or without bond under MCR 3.604(L), MCR 7.209(E)(2)(b), or MCL 600.2605. The stay order must conform to any condition expressly required by the statute authorizing review.
(3) Bond Form and Content. The bond must:
(a) recite the names and designations of the parties and the judge in the trial court; identify the parties for whom and against whom judgment was entered; and state the amount of the judgment, including any costs, interest, attorney fees, and sanctions assessed;
(b) contain the promises and conditions that the appellant will:
(i) diligently file and prosecute the appeal to decision taken from the judgment or order stayed, and will perform and satisfy the judgment or order stayed if it is not set aside or reversed;
(ii) perform or satisfy the judgment or order stayed if the appeal is dismissed;
(iii) pay and satisfy any judgment or order entered and any costs assessed against the principal on the bond in the circuit court, Court of Appeals, or Supreme Court; and
(iv) do any other act which is expressly required in the statute authorizing appeal or ordered by the court;
(c) be executed by the appellant along with one or more sufficient sureties as required by MCR 3.604; and
(d) include the conditions provided in MCR 4.201(O)(4) if the appeal is from a judgment for the possession of land.
(4) Notice of Bond; Objections; Stay Orders.
(a) A copy of a bond and any accompanying power of attorney or affidavit must be promptly served on all parties in the manner prescribed in MCR 2.107. At the same time, the party seeking the stay shall file a proposed stay order pursuant to MCR 2.602(B)(3). Proof of service must be filed promptly with the trial court in which the bond has been filed.
(b) Objections shall be filed and served within 7 days after service of the notice of bond. Objections to the amount of the bond are governed by MCR 2.602(B)(3). Objections to the surety are governed by MCR 3.604(E).
(c) If no timely objections to the bond, surety, or stay order are filed, the trial court shall promptly enter the order staying enforcement of the judgment or order pending all appeals. Unless otherwise ordered, the stay shall continue until jurisdiction is again vested in the trial court or until further order of an appellate court.
(d) Any stay order must be promptly served on all parties in the manner prescribed in MCR 2.107. Proof of service must be filed promptly with the trial court.
(e) All hearings under this rule may be held by telephone conference as provided in MCR 2.402.
(5) For good cause shown, the trial court may set the amount of the bond in a greater or lesser amount adequate to protect the interests of the parties.
(6) A bond may be secured under MCL 600.2631.
(7) If an execution has issued, it is suspended by giving notice of filing of the bond to the officer holding the execution.
(C) Criminal Cases.
(1) Immediate Effect. A criminal judgment may be executed immediately even though the time for taking an appeal has not elapsed. The granting of bond and its amount are within the discretion of the trial court, subject to the applicable laws and rules on bonds pending appeals in criminal cases.
(2) Bond Form and Content. If a bond is granted, the defendant must promise in writing:
(a) to prosecute the appeal to decision;
(b) if the sentence is one of incarceration, to surrender immediately to the county sheriff or as otherwise directed, if the judgment of sentence is affirmed on appeal or if the appeal is dismissed;
(c) if the sentence is other than one of incarceration, to perform and comply with the judgment of sentence if it is affirmed on appeal or if the appeal is dismissed;
(d) to appear in the trial court if the case is remanded for retrial or further proceedings or if a conviction is reversed and retrial is allowed;
(e) to remain in Michigan unless the court gives written approval to leave;
(f) to notify the trial court clerk in writing of a change of address; and
(g) to comply with any other conditions imposed by law or the court.
(3) Notice of Bond; Objections. A criminal defendant filing a bond after conviction shall give notice to the prosecuting attorney of the time and place the bond will be filed. The bond is subject to the objection procedure provided in MCR 3.604.
(D) Civil Infractions. An appeal bond and stay in a civil infraction proceeding is governed by MCR 4.101(H)(1).
This does not constitute legal advice, please read our disclaimer.
MCL 600.2607 - Stay pending appeal of judgment; amount of bond; limitation; rescission of limitation.
(1) The amount of a bond issued to stay execution on a judgment while an appeal is pending shall be determined according to the applicable Michigan court rules and statutory provisions. The bond shall not exceed $25,000,000.00 regardless of the amount of the judgment. The maximum amount allowed for a bond under this subsection shall be adjusted on January 1 following the fifth year after the effective date of the amendatory act that added this section and on January 1 every 5 years after that adjustment by an amount determined by the state treasurer to reflect the annual aggregate percentage change in the Detroit consumer price index since the previous adjustment. As used in this subsection, “Detroit consumer price index” means the most comprehensive index of consumer prices available for the Detroit area from the bureau of labor statistics of the United States department of labor and as certified by the state treasurer.
(2) If the appellee proves by a preponderance of the evidence that the party for whom the bond to stay execution has been limited is purposefully dissipating or diverting assets outside of the ordinary course of business for the purpose of avoiding ultimate payment of the judgment, the court shall rescind the limitation granted under subsection (1).
This does not constitute legal advice, please read our disclaimer.

Who Needs Appeal Bonds in Michigan State Cases?
Appeal bonds are typically a requirement in Michigan courts to supersede a judgment while the appellant seeks to overturn a verdict on appeal. Here are the common types of cases that require appeal bonds in Michigan.
Here are a few common cases that require appeal bonds:
- 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 (click here to read our article on Appeal Bonds in Family Law Cases)








Michigan Appeal Bonds Underwriting Requirements
While appeal 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, appeal 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 appeal 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 Michigan Appeal Bonds?
The cost of a Michigan appeal 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 appeal 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 appeal 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 Michigan Appeal Bond Through a Corporate Surety Company
Appeal bonds can take anywhere from a couple of days to several weeks to put in place, depending on the client’s circumstances. Here are the best practices to help ensure a smooth process in securing a supersedeas bond for your client:
1. Engage an Appeal Bond Expert Early
It is never too early to start discussions with a surety agent. When possible, reach out before the judgment has been entered because when it comes to appeal bonds, “more time” equals “more options” to allow the surety agent to find the best solution for the client’s unique circumstances.
2. Ensure Attorney Collaboration
It is best when the attorney is able to confirm the bond amount based on jurisdictional requirements, outline which parts of the judgment need to be bonded, keep the surety company informed of filing deadlines, and review the bond form for compliance with State or local court rules.
3. Choose a Surety Partner with Proven Expertise
Not all surety agencies are the same. Selecting a provider with a proven strong track record in issuing Michigan appeal bonds ensures your client receives specialized guidance and a smooth approval process. At CSBA, we bring decades of experience exclusively handling civil litigation bonds nationwide.
See our guide, “The Biggest Mistakes Made with Appeal Bonds,” to learn more.
Why Choose CSBA for Your Clients' Michigan Appeal Bond?
When your client needs to stay enforcement of a judgment, they need a professional surety agent who can guide them through this difficult process.
A Legacy of Expertise & Trust
Since 1984, CSBA has helped appellants from all different industries involved in almost every type of case imaginable secure appeal bonds to stay enforcement of Michigan judgments. Whether your client is an individual appealing a $1 million judgment, or a publicly traded international company needing a $1 billion appeal bond, our team is able to leverage our 110 years of combined experience to assist in securing an appeal bond for your client with competitive terms.
Exclusive Surety Insurer Access & Creative Solutions
CSBA has exclusive and semi-exclusive access to top admitted surety insurers, allowing us to handle any size appeal bond with creative collateral solutions tailored to your client’s specific financial situation. Whether the bond amount is small or large, we ensure that appellants and their attorneys receive first-class service and the best possible terms for their appeal bonds.
How Long Does It Take to Secure an Appeal Bond in Michigan?
If collateral isn’t required to secure an appeal bond, a Michigan appeal bond can be approved and issued in as little as 24 hours in the most straightforward cases.
If collateral is required, the process can vary significantly and mainly depends on the type of collateral being used. For example, cash collateral can be posted within a few days, while real estate can take 30-60 days, depending on the type and number of properties being posted.
Steps to Apply for an Appeal Bond
1. Contact a Appeal Bond Specialist
Consult with a surety expert to review your client’s bond amount, financial qualifications, and go over available collateral options. We recommend that the client contact CSBA early so that we can prevent setbacks, and ensure that all necessary steps are completed on time.
2. Explore All Available Options
The surety agent will discuss customized solutions based on your client’s financial situation. If your client may qualify for an appeal bond without full collateral, we will go over the underwriting requirements and answer any questions.
3. Submit Required Documentation
To begin the underwriting process, the following documents are required:
- Appeal bond application
- Court complaint
- Judgment
- Notice of appeal
- CPA-audited year-end financial statement (if the client is a candidate for an appeal bond without full collateral)
4. Secure Approval & Finalize the Bond
Once the underwriting documents have been received, your surety agent will review them internally and:
- Work to obtain competitive terms from a surety insurer.
- Outline the appeal bond approval for your client.
- Guide the client in the posting of the collateral, if required.
Get a Free Quote for Your Client's Appeal Bond in Michigan Today
Filing deadlines for appeal bonds are often strict and time-sensitive. At CSBA, we specialize in simplifying the underwriting process, ensuring a smooth experience so you and your client can focus on the case at hand. Our team of dedicated surety experts is ready to assist you—contact us today to take the next step in securing your client’s appeal bond in Michigan.