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Oregon Supersedeas Bonds

Portland, Oregon, USA downtown

What is an Oregon Supersedeas Bond?

In Oregon, filing a notice of appeal does not automatically pause the collection of a money judgment. To stop enforcement, the appellant must file a supersedeas undertaking (the statutory term for an appeal bond). This legal instrument serves as a guarantee that the appellant will satisfy the judgment if it is affirmed on appeal.

Under Oregon Revised Statutes 19.335, the specific requirements for the stay depend on the nature of the judgment:

  • Money Judgments: The stay is effective if the undertaking ensures the appellant will pay the judgment to the extent it is affirmed.
  • Real Property: If the case involves the possession of real estate, the undertaking must provide that the appellant will not commit waste and will pay the value of use and occupation for the period they remain in possession.
  • Personal Property: The judgment is stayed if the undertaking states that the appellant will pay an amount determined by the trial court should the appellant not obey the appellate court’s judgment.

Oregon Supersedeas Bond Amount Requirements

Oregon Revised Statutes 19.335 and 19.312 outline the requirements for setting the bond amount. Here are the key highlights for attorneys and their clients:

  • Tobacco Litigation Cap: Under ORS 19.312, the supersedeas undertaking for a tobacco product manufacturer (or their affiliates) is capped at $150 million, regardless of the total judgment value.
  • Exception for Asset Dissipation: Per ORS 19.312(3), if the court finds that a tobacco manufacturer is purposefully dissipating or diverting assets to avoid payment, the court may rescind the cap and require a bond for the full amount of the judgment.
  • Foreclosure Cases: Under ORS 19.335(4), if the judgment involves a foreclosure and a debt, the undertaking must cover any portion of the judgment that remains unsatisfied after the sale of the property.
  1. If a judgment is for the recovery of money, a supersedeas undertaking acts to stay the judgment if the undertaking provides that the appellant will pay the judgment to the extent that the judgment is affirmed on appeal.
  2. If a judgment requires the transfer or delivery of possession of real property, a supersedeas undertaking acts to stay the judgment if the undertaking provides that the appellant will not commit waste or allow waste to be committed on the real property while the appellant possesses the property, and the appellant will pay the value of the use and occupation of the property for the period of possession if the judgment is affirmed. The value of the use and occupation during the period of possession must be stated in the undertaking.
  3. Intentionally left blank —Ed.
    • If a judgment requires the transfer or delivery of possession of personal property, a supersedeas undertaking acts to stay the judgment if the undertaking provides that the appellant will obey the judgment of the appellate court, and that if the appellant does not obey the judgment, the appellant will pay an amount determined by the trial court and stated in the undertaking.
    • If a judgment requires the transfer or delivery of possession of personal property, the judgment is stayed without the filing of a supersedeas undertaking if the appellant transfers or delivers the personal property to the court or places the property in the custody of an officer or receiver appointed by the trial court.
  4. If a judgment requires the foreclosure of a mortgage, lien or other encumbrance, and also requires payment of the debt secured by the mortgage, lien or other encumbrance, a supersedeas undertaking acts to stay that portion of the judgment that requires payment of the debt if the undertaking provides that the appellant will pay any portion of the judgment remaining unsatisfied after the sale of the property subject to the mortgage, lien or other encumbrance. The amount of the undertaking must be stated in the undertaking. The requirements of this subsection are in addition to any provisions in a supersedeas undertaking that may be required under subsection (2) or (3) of this section to stay delivery or transfer of property.
  5. If a judgment requires the execution of a conveyance or other instrument, the judgment is stayed without the filing of a supersedeas undertaking if the appellant executes the instrument and deposits the instrument with the trial court administrator. Unless otherwise directed by the appellate court, the instrument must be held by the trial court administrator until issuance of the appellate judgment terminating the appeal.
  6. Except as provided in ORCP 72, a stay of judgment described in this section takes effect only after the party has filed a notice of appeal and filed any supersedeas undertaking required for the stay.

Source

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

  1. The provisions of this section apply only to civil actions against a tobacco product manufacturer as defined in ORS 323.800 (Definitions for ORS 323.800 to 323.807), or against an affiliate or successor of a tobacco product manufacturer, in which:
  2. In any civil action described in subsection (1) of this section, the supersedeas undertaking required of the tobacco product manufacturer, or of an affiliate or successor of the tobacco product manufacturer, as a condition of a stay of judgment throughout all appeals or discretionary appellate review, shall be established in the manner provided by the laws and court rules of this state applicable to supersedeas undertakings, but the amount of the supersedeas undertaking may not exceed $150 million.
  3. If at any time after the posting of the supersedeas undertaking pursuant to the provisions of this section the court determines that a tobacco product manufacturer, affiliate or successor, outside of the ordinary course of its business, is purposely dissipating or diverting assets for the purpose of avoiding payment on final judgment in the action, the court may condition continuance of the stay on an order requiring that the tobacco product manufacturer, affiliate or successor post a supersedeas undertaking in an amount up to the full amount of the judgment.
  4. The provisions of this section apply to any supersedeas undertaking required for a judgment entered by a court of this state and to any security required as a condition of staying enforcement of a foreign judgment under the provisions of ORS 24.135 (Grounds for staying enforcement of judgment).

Source

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

Attorneys or lawyer reading statute of limitations, consulting between male lawyers and business clients, tax firms and examining contract documents in business before signing

Who Needs Supersedeas Bonds in Oregon 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 Oregon 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
"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
David Niddrie
"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
David Axelrad.
"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
Ben Feuer
"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
David Niddrie
"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
David Axelrad.
"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
Ben Feuer

Oregon Supersedeas Bonds Underwriting Requirements

While supersedeas 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, supersedeas 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 supersedeas 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.
Visit our Collateral Options page for more information on each form of collateral

FAQs

An Oregon 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.

Securing a supersedeas bond in Oregon can be a complex process. Following best practices and having an experienced appellate bond specialist working with your client can help simplify this process and ensure a smooth and efficient experience:

  1. Contact a surety bond agent early. This advantage helps the client explore all options and ensure they can file the supersedeas bond without delay.
  2. 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 State or local rules.
  3. 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.

If collateral isn’t required to secure a supersedeas bond, an Oregon supersedeas 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 an Appeal Bond

  1. Contact a Supersedeas 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.
  2. Explore All Available Options – The surety agent will discuss customized solutions based on your client’s financial situation. If your client may qualify for a supersedeas bond without full collateral, we will go over the underwriting requirements and answer any questions.
  3. Submit Required Documentation – To begin the underwriting process, the following documents are required:
  4. 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 supersedeas bond approval for your client.
    • Guide the client in the posting of the collateral, if required.

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.

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

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

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