Missouri Supersedeas Bonds

What is a Missouri Supersedeas Bond?

While a client can file an appeal without a supersedeas bond, the bond is the legal mechanism required to stay the execution of a judgment while the case is on appeal. In Missouri, an appeal does not automatically stay execution; per the Missouri Rules of Civil Procedure, Rule 81.09, a stay is obtained by presenting a supersedeas bond to the court or clerk for approval.

A Missouri supersedeas bond ensures that if the judgment is affirmed or the appeal is dismissed, the appellant will satisfy the judgment in full, including interest, costs, and any damages awarded for the delay.

If you’re an attorney handling your client’s case in Missouri, here are the requirements and statutory caps for securing a supersedeas bond.

Missouri Supersedeas Bond Amount Requirements

Missouri Rules of Civil Procedure 81.09 and Revised Statutes of Missouri § 512.099 outline the specific requirements for the bond amount and the conditions for staying a judgment. Here are several highlights to be aware of:

Bond Amount: For a money judgment, the bond amount is typically fixed at a sum that covers the whole amount of the judgment remaining unsatisfied, plus costs on appeal, interest, and damages for delay.
$50 Million Cap: Under RSMo § 512.099, in any case alleging a tort, the total appeal bond or equivalent surety required for all appellants collectively shall not exceed $50 million, regardless of the total value of the judgment.
Exception for Asset Dissipation: The $50 million cap may be rescinded if the respondent proves by a preponderance of the evidence that the appellant is purposefully dissipating or diverting assets outside the ordinary course of business to avoid payment.

Rule 81.09 Appeals Shall Stay Execution, in What Cases – Bond

(a) Stay of Execution – Supersedeas Bond. Appeals shall stay the execution in the following cases:

(1) when the appellant shall be an executor or administrator, personal representative, conservator, guardian, or curator, and the action shall be by or against the appellant as such, or when the appellant shall be a county, city, town, township, school district, or other municipality;

(2) when the appellant, at or prior to the time of filing notice of appeal, presents to the court for its approval a supersedeas bond which shall have such surety or sureties as the court requires.

The court may also at or prior to the time of filing notice of appeal, by order of record, fix the amount of the supersedeas bond and allow appellant reasonable time, not exceeding thirty days, from the date of the order to file the same subject to the approval of the court or clerk, and such appeal bond, approved by the court or clerk and filed within the time specified in such order, shall have the effect of staying the execution thereafter. If any execution shall have been taken prior to the filing of the bond as so approved by the court or clerk, the same shall be released. Appellant shall file a copy of a proper appeal bond, including complete current addresses, with the clerk of the appellate court within ten days after filing the appeal bond.

(b) Form of Bond – Amount. 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 and 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 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. The bond will indicate the addresses of the sureties.

(c) Application to the Appellate Court. Any party who believes that the bond or the security is inadequate or excessive may file an application in the court in which the appeal is pending stating the grounds for the application and the relief sought. If the court finds that the bond or the security is inadequate or excessive, the court shall make an order modifying the conditions of the stay of execution.

Source

*This does not constitute legal advice, please read our disclaimer.

MO Rev Stat § 512.099 Bond or surety required during pendency of appeal, set how

Bond or surety required during pendency of appeal, set how. — 1. In all cases in which there is a count alleging a tort, the amount of the required undertaking or bond or equivalent surety to be furnished during the pendency of an appeal or any discretionary appellate review of any judgment granting legal, equitable, or any other form of relief in order to stay the execution thereon during the entire course of appellate review shall be set in accordance with applicable laws or court rules; except, that the total appeal bond or equivalent surety that is required of all appellants collectively shall not exceed fifty million dollars, regardless of the value of the judgment. Nothing in this section or any other provision of law shall be construed to eliminate the discretion of the court, for good cause shown, to set the undertaking or bond on appeal in an amount lower than that otherwise established by law.

2. If the respondent proves by a preponderance of the evidence that a party bringing an appeal or seeking a stay, for whom the undertaking has been limited, is purposefully dissipating or diverting assets outside of the ordinary course of its business for the purpose of avoiding ultimate payment of the judgment, the limitation granted under subsection 1 of this section may be rescinded and the court may enter such orders as are necessary to prevent dissipation or diversion of the assets. An appellant whose bond has been reduced under subsection 1 of this section shall:

(1) Provide to the court and respondent the most recent statement of assets and liabilities of the appellant that is filed with any federal, state, or foreign regulatory agency;

(2) Provide to the court and respondent on a quarterly basis any subsequent updated statement of assets and liabilities that is filed with any federal, state, or foreign regulatory agency; and

(3) Agree in writing or in court on the record that it will not dissipate or divert assets outside the ordinary course of its business for the purpose of avoiding ultimate payment of the judgment.

3. The provisions of this section shall apply to all judgments entered on or after August 28, 2005.

Source

*This does not constitute legal advice, please read our disclaimer.

Who Needs Supersedeas Bonds in Missouri State Cases?

In Missouri 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 supersedeas bonds in Missouri:

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

"Over many years, Arturo Ayala of CSBA – COURT SURETY BOND AGENCY has been our ‘go to guy’ for all appeal bond related matters. Arturo knows most everything about bonds, and he is always willing to answer our questions to find the best path for our clients. We highly recommend Arturo and CSBA."

David NiddrieNiddrie Addams Fuller Singh LLP

"I have known Dan Huckabay for many years. He is one of the most knowledgeable appeal bond brokers in the business. His understanding of the requirements for appeal bonds, knowledge of the surety insurer market and his experience working with individual surety insurers make him an excellent choice when you need to bond an appeal."

David AxelradHorvitz & Levy LLP

"Dan Huckabay is my go-to appeal bonding agent. He’s knowledgeable, generous with his time, and has put bonds together for us using more challenging types of collateral than some other agents were able to do. He’s the first person I recommend when our clients need appeal bonds."

Ben FeuerComplex Appellate Litigation Group LLP

David NiddrieNiddrie Addams Fuller Singh LLP

David AxelradHorvitz & Levy LLP

Ben FeuerComplex Appellate Litigation Group LLP

Missouri 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 Missouri 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 Does a Missouri Supersedeas Bond Cost?

A Missouri supersedeas bond cost is determined by the premium rate set by a surety company, which is generally between 0.3% to 4% depending 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

The bond premium is charged yearly until the surety’s liability under the bond is fully released. If the bond is exonerated midterm after the first year’s renewal, the client will receive a prorated return premium from the surety company.

Best Practices for Posting a Missouri 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 Missouri 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.

Why Choose CSBA for Your Client's Supersedeas Bonds in Missouri?

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 supersedeas bonds, and we can guide your clients through the complex process.

A Legacy of Expertise & Trust

CSBA has helped appellants secure supersedeas 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 Missouri Supersedeas Bond?

The time frame to secure a Missouri 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 a Supersedeas 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.

Get a Free Quote for Your Client's Missouri Supersedeas Bond Today

Filing a supersedeas bond comes with strict deadlines, and securing a Missouri 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.