Massachusetts Appeal Bonds
How to Stay a Judgment in Massachusetts
In Massachusetts, Rule 62(a) provides an automatic stay of execution until the time for appeal from the judgment has expired. Once an appeal is taken, Rule 62(d) states that the taking of an appeal from a judgment shall stay execution upon the judgment during the pendency of the appeal, except as otherwise provided in the rules. This means that for the majority of standard civil judgments, the filing of the appeal itself functions as the stay without an immediate requirement for a bond.
However, certain types of judgments are excluded from this automatic stay. Per Rule 62(a), interlocutory or final judgments in actions for an injunction or in receivership actions are not stayed unless otherwise ordered by the court.
Mass. R. Civ. P. 62(d)
(a) Automatic stay; exceptions — Injunctions and receiverships
Except as stated herein, no execution shall issue upon a judgment nor shall proceedings be taken for its enforcement until the time for appeal from the judgment has expired. In the District Court, in the case of a default judgment, no execution shall issue until 10 days after entry of such judgment. Unless otherwise ordered by the court, an interlocutory or final judgment in an action for an injunction or in a receivership action shall not be stayed during the period after its entry and until an appeal is taken or during the pendency of an appeal. The provisions of subdivision (c) of this rule govern the suspending, modifying, restoring, or granting of an injunction during the pendency of an appeal.
(b) Stay on motion to vacate judgment
In its discretion and on such conditions for the security of the adverse party as are proper, the court may stay the execution of or any proceedings to enforce a judgment pending the disposition of a motion for relief from a judgment or order made pursuant to Rule 60.
(c) Injunction pending appeal
When an appeal is taken from an interlocutory or final judgment granting, dissolving, or denying an injunction, the court in its discretion may suspend, modify, restore, or grant an injunction during the pendency of the appeal upon such terms as to bond or otherwise as it considers proper for the security of the rights of the adverse party.
(d) Stay upon appeal
Except as otherwise provided in these rules, the taking of an appeal from a judgment shall stay execution upon the judgment during the pendency of the appeal.
(e) Power of appellate court not limited
The provisions in this rule do not limit any power of the appellate court or of a single justice thereof to stay proceedings during the pendency of an appeal or to suspend, modify, restore, or grant an injunction during the pendency of an appeal or to make any order appropriate to preserve the status quo or the effectiveness of the judgment subsequently to be entered.
(f) Stay of judgment as to multiple claims or multiple parties
When a court has ordered a final judgment under the conditions stated in Rule 54(b) the court may stay enforcement of that judgment until the entering of a subsequent judgment or judgments and may prescribe such conditions as are necessary to secure the benefit thereof to the party in whose favor the judgment is entered.
*This does not constitute legal advice, please read our disclaimer.
Massachusetts Appeal Bonds Underwriting Requirements
Unlike many jurisdictions where appellants are required to post an appeal or supersedeas bond to stay enforcement of a judgment, Massachusetts grants an automatic stay for most money judgments. However, if your client does require an appeal bond, here are the underwriting requirements.
An appeal 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, an appeal 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.
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
Since most judgments are not reversed on appeal, there is a high likelihood that the surety will receive a claim on the appeal bond. Given this high probability of a claim, surety companies will often require collateral equal to the full bond amount before issuing a Massachusetts appeal bond.
Collateral Options for Appeal Bonds
To secure an appeal bond, appellants may provide collateral in various forms, including the following:
- Cash: This is generally the most streamlined collateral option for clients when dealing with a tight deadline.
- Bank Letters of Credit: A formal guarantee from a bank to a surety, ensuring the availability of funds up to a certain dollar amount upon demand.
- Real Estate: Acceptable collateral may include residential properties (single-family or multi-family) and commercial properties (office, industrial, or retail). However, due to the homestead laws in Tennessee, the property cannot be the client’s primary residence.
- Marketable Securities: Non-retirement brokerage accounts holding stocks and bonds can be pledged as collateral, offering a creative option for securing an appeal bond without having to liquidate assets.
FAQs
How Much are the Premium Rates for Massachusetts Appeal Bonds?
The cost of a Massachusetts 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.
What are the Best Practices for Securing an Appeal Bond through an Admitted Surety Insurer?
Securing a Massachusetts appeal bond can be complex. However, following best practices can help ensure a smooth experience. Here’s what we recommend:
- Contact a surety bond agent early. This advantage helps the client explore all options and ensure the appeal bond can be filed 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 local rules.
- You 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 Massachusetts appeal bonds.
For more insights, check out our guide: “The Biggest Mistakes Made with Appeal Bonds.“
Why Choose CSBA for Your Client's Massachusetts Appeal Bonds?
If your client needs to stay enforcement of a Massachusetts 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 35 surety insurers for clients seeking to secure a Massachusetts appeal 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 appeal bond for a private individual or a $1 billion appeal 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 appeal bond process.
Our specialized expertise and direct surety relationships set us apart, making CSBA the trusted choice to attorneys and their clients for appeal bonds in Massachusetts cases.
How Long Does It Take to Secure an Appeal Bond in Massachusetts?
If collateral isn’t required to secure an appeal bond, a Massachusetts 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 a Supersedeas Bond
- Contact an 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.
- 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.
- 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)
- 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 Massachusetts Appeal Bond Today
Filing an appeal bond comes with strict deadlines, and securing a Massachusetts appeal 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.