Ohio Supersedeas Bonds
What is an Ohio Supersedeas Bond?
In Ohio, filing a notice of appeal does not automatically stay the enforcement of a final order, judgment, or decree. Under Ohio Revised Code Section 2505.09, an appellant may obtain a stay of execution pursuant to the Rules of Appellate Procedure and the filing of a supersedeas bond.
A supersedeas bond serves as a financial guarantee to the appellee, and protects their interests while the case is under review. According to Ohio Revised Code Section 2505.14, the bond shall be conditioned on the appellant paying all money, costs, and damages that may be awarded upon final determination of the appeal.
Ohio Supersedeas Bond Amount Requirements
Ohio Revised Code Section 2505.09 and the Ohio Rules of Appellate Procedure establish specific parameters for determining the amount and conditions of the security. Here are the key requirements for attorneys to consider:
- Bond Amount: The bond must be in a sum that is not less than the cumulative total for all claims covered by the judgment, including the interest involved.
- Maximum Bond Amount: The total amount of the bond is capped at $50 million, excluding interest and costs, regardless of the size of the underlying judgment.
- Court Discretion: The court that rendered the final order or the appellate court has the authority to direct the specific sum and approve the sureties to ensure the appellee is adequately protected.
Ohio Revised Code Section § 2505.09 - Stay of execution - Supersedeas bond
*This does not constitute legal advice, please read our disclaimer.
Who Needs Supersedeas Bonds in Ohio State Cases?
Aside from judgments against most public entities, judgment debtors are required to post a supersedeas bond or other security to prevent judgment execution during the appeal.
Here are some of the cases that may require supersedeas bonds in Ohio 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
Ohio 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 Ohio 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 Ohio Supersedeas Bond Cost?
A Ohio 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 an Ohio 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 Ohio 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 an Ohio Supersedeas Bond?
The time frame to secure an Ohio 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' Ohio 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 Ohio 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 Ohio Supersedeas Bond Today
Filing a supersedeas bond comes with strict deadlines, and securing a Ohio 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.