Wisconsin Appeal Bonds
What is a Wisconsin Appeal Bond?
In Wisconsin, filing an appeal does not automatically stay the execution of a money judgment or order. Under Wis. Stat. § 808.07(1), enforcement continues unless a stay is granted by the trial court or the appellate court. To obtain this stay, an appellant typically must file an undertaking (the statutory term for an appeal bond) in the trial court.
A Wisconsin appeal bond serves as a financial guarantee that the judgment creditor (respondent) will have its judgment satisfied should the judgment be affirmed on appeal.
Wisconsin Appeal Bond Amount Requirements
Wisconsin Statute § 808.07 outlines the specific requirements for the undertaking amount and the conditions for staying a judgment.
- Bond Amount: The court shall determine the amount of the undertaking to be furnished collectively by all appellants to stay execution of the judgment during appellate review.
- Under Wis. Stat. § 808.07(2m)(a), the collective amount of the undertaking required for all appellants in a civil action to stay execution is capped at $100 million.
- Exception for Asset Dissipation: Per § 808.07(2m)(b), if the appellee proves by a preponderance of the evidence that the appellant is dissipating assets outside the ordinary course of business to avoid payment, the court may rescind the cap. In such cases, the court may require a bond for the full amount of the judgment.
By filing a court-approved undertaking, Wisconsin appellants can secure a stay of execution to prevent the immediate collection of a judgment while the case is an appeal.
808.07 Relief Pending Appeal
*This does not constitute legal advice, please read our disclaimer.
Who Needs Appeal Bonds in Wisconsin State Cases?
Aside from judgments against most public entities, judgment debtors are required to post an appeal bond or other security to prevent judgment execution during the appeal.
Here are some of the cases that may require appeal bonds in Wisconsin courts.
- 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
Wisconsin 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 Wisconsin Appeal Bonds?
The cost of a Wisconsin 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 supersedeas bond
- 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 Wisconsin 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:
- 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.
- 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.
- 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 Wisconsin 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 Client's Appeal Bonds in Wisconsin?
When the stakes are high, your clients need a professional surety agent they can count on to stay enforcers of judgment. At CSBA, we have decades of experience in appeal bonds, and we can guide your clients through the complex process.
A Legacy of Expertise & Trust
CSBA has helped appellants secure appeal bonds from various industries involving almost every type of case since 1984. So whether your client is an individual needing a $1 million bond or a publicly traded company with a billion dollar judgment, we have the experience and resources to help.
Exclusive Surety Insurer Access & Creative Solutions
At CSBA, we have access to over 30 top-rated surety insurers. Several of these are exclusive or semi-exclusive insurers that most agents don’t have. This unique access and programs allow us to find creative solutions tailored to each client’s circumstances.
How Long Does It Take to Secure a Wisconsin Appeal Bond?
The time frame to secure a Wisconsin appeal bond will depend on whether or not collateral is required.
If collateral isn’t required, the bond can be approved and issued within 24 hours in the most straightforward cases.
If the surety does require collateral, the type of collateral can affect the duration of securing an appeal bond. Cash collateral can be secured in a few days, while real estate collateral can generally take 30-60 days, depending on the property type and number of properties being posted.
Steps to Apply for a Supersedeas Bond
- Contact an appeal bond specialist to review your client’s bond requirement and start the process.
- The bond agent will discuss the various options with you and your client, and address any underwriting questions you or the client may have.
- 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.
- The surety agent will outline the appeal bond approval, and work closely with you and your client to efficiently finalize the bond.
Get a Free Quote for Your Client's Appeal Bond in Wisconsin 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 Wisconsin.