Kansas Supersedeas Bonds
What is a Kansas Supersedeas Bond?
In Kansas, a supersedeas bond is a type of security instrument used by an appellant to obtain a stay of execution on a civil judgment while an appeal is pending. According to Kansas Statutes Annotated 60-2103(d), filing a notice of appeal does not automatically pause the enforcement of a judgment; instead, the appellant must present a supersedeas bond to the district court for approval. Once approved, the bond ensures that the judgment creditor (appellee) is financially protected and will be paid in full; including costs, interest, and damages for delay, if the appeal is dismissed or the judgment is affirmed. The stay becomes effective only upon the court’s approval of the bond and its sureties.
The supersedeas bond’s primary function is to preserve the status quo during the appellate process and guarantee that the appellant is pursuing the legal challenge in good faith.
Kansas Supersedeas Bond Amount Requirements
Kansas Statutes Annotated 60-2103 outlines the requirements for determining the amount of a supersedeas bond, providing specific protections for small businesses and cases involving significant financial hardship.
- Bond Amount: For money judgments, the amount of the bond shall cover the whole amount of the judgment remaining unsatisfied, costs on the appeal, interest, and damages for delay
- Maximum Bond Amount: Regardless of the total judgment value, the amount of a supersedeas bond in Kansas cannot exceed $25,000,000.
- Bond Amount Exception: If an appellant proves that a full-amount bond would cause undue hardship or deny them the right to an appeal, the court may reduce the supersedeas bond amount.
- Asset Dissipation Exception: The $25 million cap and hardship limitations do not apply if the appellee proves that the appellant is purposefully dissipating or diverting assets to avoid payment. In such cases, the court may require a bond for the full amount of the judgment.
Kansas Statutes Annotation § 60-2103 - Appellate procedure
(a) When and how taken. When an appeal is permitted by law from a district court to an appellate court, the time within which an appeal may be taken shall be 30 days from the entry of the judgment, as provided by K.S.A. 60-258, and amendments thereto, except that upon a showing of excusable neglect based on a failure of a party to learn of the entry of judgment the district court in any action may extend the time for appeal not exceeding 30 days from the expiration of the original time herein prescribed. The running of the time for appeal is terminated by a timely motion made pursuant to any of the rules hereinafter enumerated, and the full time for appeal fixed in this subsection commences to run and is to be computed from the entry of any of the following orders made upon a timely motion under such rules: Granting or denying a motion for judgment under K.S.A. 60-250(b), and amendments thereto; or granting or denying a motion under K.S.A. 60-252(b), and amendments thereto, to amend or make additional findings of fact, whether or not an alteration of the judgment would be required if the motion is granted; or granting or denying a motion under K.S.A. 60-259, and amendments thereto, to alter or amend the judgment; or denying a motion for new trial under K.S.A. 60-259, and amendments thereto.
A party may appeal from a judgment by filing with the clerk of the district court a notice of appeal. Failure of the appellant to take any of the further steps to secure the review of the judgment appealed from does not affect the validity of the appeal, but is ground only for such remedies as are specified in this chapter, or when no remedy is specified, for such action as the appellate court having jurisdiction over the appeal deems appropriate, which may include dismissal of the appeal. If the record on appeal has not been filed with the appellate court, the parties, with the approval of the district court, may dismiss the appeal by stipulation filed in the district court, or that court may dismiss the appeal upon motion and notice by the appellant.
(b) Notice of appeal. The notice of appeal shall specify the parties taking the appeal; shall designate the judgment or part thereof appealed from, and shall name the appellate court to which the appeal is taken. The appealing party shall cause notice of the appeal to be served upon all other parties to the judgment as provided in K.S.A. 60-205, and amendments thereto, but such party’s failure so to do does not affect the validity of the appeal.
(c) Security for costs. Security for the costs on appeal shall be given in such sum and manner as shall be prescribed by a general rule of the supreme court unless the appellate court shall make a different order applicable to a particular case.
(d) Supersedeas bond. (1) Whenever an appellant entitled thereto desires a stay on appeal, such appellant may present to the district court for its approval a supersedeas bond which shall have such surety or sureties as the court requires. Subject to paragraph (2), the bond shall be conditioned for the satisfaction of the judgment in full together with costs, interest, and damages for delay, if for any reason the appeal is dismissed, or if the judgment is affirmed, and to satisfy in full such modification of the judgment such costs, interest, and damages as the appellate court may adjudge and award. When the judgment is for the recovery of money not otherwise secured, the amount of the bond shall be fixed at such sum as will cover the whole amount of the judgment remaining unsatisfied, costs on the appeal, interest, and damages for delay, unless the court after notice and hearing and for good cause shown fixes a different amount or orders security other than the bond. When the judgment determines the disposition of the property in controversy as in real actions, replevin, and actions to foreclose mortgages or when such property is in the custody of the sheriff or when the proceeds of such property or a bond for its value is in the custody or control of the court, the amount of the supersedeas bond shall be fixed after notice and hearing at such sum only as will secure the amount recovered for the use and detention of the property, the costs of the action, costs on appeal, interest, and damages for delay. When an order is made discharging, vacating, or modifying a provisional remedy, or modifying or dissolving an injunction, a party aggrieved thereby shall be entitled, upon application to the judge, to have the operation of such order suspended for a period of not to exceed 14 days on condition that, within such period of 14 days such party shall file a notice of appeal and obtain the approval of such supersedeas bond as is required under this section.
(2) (A) Except as provided in subparagraphs (C) and (D), if an appellant appeals from any form of judgment based on any legal theory and seeks a stay of enforcement during the period of appeal, the supersedeas bond shall be set at the full amount of the judgment. If the appellant proves by a preponderance of the evidence that setting the supersedeas bond at the full amount of the judgment will result in the appellant suffering an undue hardship or a denial of the right to an appeal, then the court may reduce the amount of the supersedeas bond as follows:
(i) If the judgment is less than or equal to $1,000,000 in value, the supersedeas bond shall be set at the full amount of the judgment; or
(ii) if the judgment exceeds $1,000,000 in value, the supersedeas bond shall be set at a total of $1,000,000 plus 25% of any amount in excess of $1,000,000.
(B) (i) There shall be a rebuttable presumption that an appellant will suffer an undue hardship pursuant to subparagraph (A) when the:
(a) Judgment amount exceeds $2,500,000;
(b) defendant is a small business; and
(c) judgment is for a claim arising from activities within the appellant’s ordinary course of business.
(ii) For the purposes of this subparagraph, “small business” means a sole proprietorship, partnership, limited liability company, corporation or other business entity, whether for-profit or not-for-profit, that has between two and 50 employees and is not a corporate affiliate or subsidiary of, or owned in whole or in part by, any other business.
(C) The amount of a supersedeas bond shall not exceed $25,000,000, regardless of the full amount of the judgment.
(D) The limitations on the amount of a supersedeas bond established by subparagraph (A), (B) or (C) shall not apply if the appellee proves by a preponderance of the evidence that the appellant bringing the appeal is purposefully dissipating or diverting assets outside of the ordinary course of its business, or is likely to purposefully dissipate or divert assets outside of the ordinary course of its business, for the primary purpose of avoiding ultimate payment of the judgment. In such event, the court may enter such orders as are necessary to stop the dissipation and diversion of assets, including a requirement that the appellant post a bond in the full amount of the judgment.
(E) Nothing in this section shall be construed to prohibit a court from setting a supersedeas bond in a lower amount as may be otherwise required by law or for good cause shown.
(F) A bond shall not be found insufficient under any other provision of law due to limits imposed under this subsection.
(e) Failure to file or insufficiency of bond. If a supersedeas bond is not filed within the time specified, or if the bond filed is found insufficient, and if the action is not yet docketed with the appellate court, a bond may be filed at such time before the action is so docketed as may be fixed by the district court. After the action is so docketed, application for leave to file a bond may be made only in the appellate court.
(f) Judgment against surety. By entering into a supersedeas bond given pursuant to subsections (c) and (d), the surety submits such surety’s self to the jurisdiction of the court and irrevocably appoints the clerk of the court as such surety’s agent upon whom any papers affecting such surety’s liability on the bond may be served. Such surety’s liability may be enforced on motion without the necessity of an independent action. The motion and such notice of the motion as the judge prescribes may be served on the clerk of the court who shall forthwith mail copies to the surety if such surety’s address is known.
(g) Docketing record on appeal. The record on appeal shall be filed and docketed with the appellate court at such time as the supreme court may prescribe by rule.
(h) Cross-appeal. When notice of appeal has been served in a case and the appellee desires to have a review of rulings and decisions of which such appellee complains, the appellee shall, within 21 days after the notice of appeal has been served upon such appellee and filed with the clerk of the trial court, give notice of such appellee’s cross-appeal.
(i) Intermediate rulings. When an appeal or cross-appeal has been timely perfected, the fact that some ruling of which the appealing or cross-appealing party complains was made more than 30 days before filing of the notice of appeal shall not prevent a review of the ruling.
(j) The amendments to subsection (d) by this act* shall apply to any proceeding that is filed on or after the effective date of this act.
*This does not constitute legal advice, please read our disclaimer.
Who Needs Supersedeas Bonds in Kansas State Cases?
Aside from judgments against most public entities, judgment debtors are required to post an supersedeas bond or other security to prevent judgment execution during the appeal.
Here are some of the cases that may require supersedeas bonds in Kansas 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
Kansas Supersedeas Bonds Underwriting Requirements
A supersedeas bond functions similarly to an extension of credit. It ensures that the judgment debtor will pay the judgment to the judgment creditor if the appeal is wholly or partially unsuccessful. Unlike traditional insurance, which absorbs financial losses, a supersedeas bond requires the appellant to reimburse the surety company if the appeals court affirms the trial court’s decision and the surety ends up paying a claim on the bond.
Since most judgments are not reversed on appeal, there is a high likelihood that the surety will receive a claim on the supersedeas bond. Given this high probability of a claim, surety companies will often require collateral equal to the full bond amount before issuing a Kansas supersedeas bond.
Exceptions to Collateral Requirements
Certain high-net-worth appellants with substantial liquidity relative to the bond amount may qualify for an appeal bond without full collateral. This may include:
- Publicly traded companies
- Banks and financial institutions
- Insurers
- Large private firms
- Individuals with significant liquid assets
Collateral Options for Supersedeas Bonds
To secure a supersedeas bond, appellants may provide collateral in various forms, including the following:
- Cash: This is the fastest and most straightforward method for securing a supersedeas bond. Appellants can also potentially earn interest on their cash during the appeal.
- Bank Letters of Credit: These are a financial guarantee issued by a bank to a surety, which confirms availability of funds upon demand up to a stated amount.
- Real Estate: Residential and commercial properties, including single-family homes, multi-family units, office spaces, industrial facilities, and retail properties.
- Marketable Securities: These include non-retirement brokerage accounts holding publicly traded stocks and bonds pledged to a surety as collateral.
FAQs
How Much are the Premium Rates for Kansas Supersedeas Bonds?
The cost of a Kansas 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 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 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 Kansas Supersedeas Bond Through a Corporate Surety Company
Supersedeas 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 a Supersedeas 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 supersedeas 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 Kansas supersedeas 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.
How Long Does It Take to Secure a Kansas Supersedeas Bond?
The time frame to secure a Kansas supersedeas 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 a supersedeas 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 an Appeal Bond
- Contact a supersedeas 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 supersedeas bond approval and work closely with you and your client to efficiently finalize the bond.
Why Choose CSBA for Your Clients' Kansas Supersedeas 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 supersedeas bonds to stay enforcement of Kansas judgments. Whether your client is an individual appealing a $1 million judgment, or a publicly traded international company needing a $1 billion supersedeas bond, our team is able to leverage our 110 years of combined experience to assist in securing a supersedeas 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 supersedeas 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 supersedeas bonds.
Get a Free Quote for Your Client's Supersedeas Bond in Kansas Today
Filing deadlines for supersedeas 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 supersedeas bond in Kansas.