Texas Supersedeas Bonds

What is a Texas Supersedeas Bond?
A supersedeas bond in Texas allows a judgment debtor (often the defendant) to temporarily stop the enforcement of a money judgment while they appeal. Also known as an appeal bond, the bond must cover compensatory damages awarded, interest for the estimated appeal duration, and costs.
If the appeal is ultimately unsuccessful, the judgment creditor (often the plaintiff) can file a claim on the bond to collect on the judgment from the surety should the judgment debtor not satisfy the judgment.
Without a supersedeas bond in place or acceptable alternative security, the judgment creditor can generally enforce the final judgment after 30 days while the case is on appeal.
Texas Supersedeas Bond Amount and Court Requirements
Per the Texas Rules of Appellate Procedures, Rule 24.1 Suspension of Enforcement, filing a supersedeas bond with the court is one way to pause the enforcement of a judgment. The bond must be payable to the creditor, signed by the debtor, and backed by a sufficient surety.
Texas Rules of Appellate Procedure - Rule 24.2
A. Preliminary Considerations
It is not too early to consider before trial what your client would need to do to stay enforcement of a potential adverse judgment. Waiting until the judgment will put your client at a disadvantage—some collection efforts can begin immediately after the judgment is signed, and substantial time and effort are often required to supersede a judgment.
If planning to supersede with a supersedeas bond, contact a reputable bond broker to begin the process of obtaining a bond as soon as possible. One source is the National Association of Surety Bond Producers, a national trade association of surety brokers and producers.2
In the event of an adverse final judgment or appealable order, confirm that your client desires to appeal.
Seek and obtain a Rule 11 agreement with opposing counsel not to attempt collection efforts or execution on the judgment during the time needed to supersede the judgment.
Calculate the amount of security required to stay execution.3
a. Attorneys’ fees incurred in the prosecution or defense of a claim are not compensatory damages or costs and therefore do not need to be superseded.4
b. But if attorneys’ fees are an element of damages—e. g., a breach-of-contract claim for unpaid attorneys’ fees—they are compensatory and must be superseded.5
c. Prejudgment interest generally does not need to be superseded.6
Evaluate the feasibility of the various available methods to supersede, one of which includes the parties entering a written agreement to suspend enforcement of the judgment during the appeal, which must be filed with the trial court.7
If your client chooses to supersede by filing a bond or a deposit in lieu of bond, contact the clerk’s office well before you plan to file the instrument to determine:
a. the name and location of the person who has the responsibility of approving bonds or deposits;
b. whether there are formal or informal “rules” or unique procedures the clerk’s office follows regarding:
i. the wording on the instrument;
ii. the amount of required security;
iii. the term of post-judgment interest—e.g., one year, 18 months, or two years; and
c. whether the original bond or notice of deposit must be:
i. physically presented to the clerk for approval, upon which the approved bond or notice of deposit will be filed;
ii. efiled, upon which the clerk will review for approval and sign electronically or physically upon approval; or
iii. both i and ii;
d. if superseding with a bond, whether that surety is approved by the clerk for the amount of required security; and
e. if superseding by deposit, what types of negotiable instruments the clerk accepts and, if the deposit will be by check, whether the clerk requires a certified check.
B. Net-Worth Issues
1. If superseding a money judgment, ask your client if it believes the amount of required security exceeds 50% of its current net worth.8
2. If it will, or might, have the client:
a. gather its current financials, preferably audited financials;
b. make a list of current assets and liabilities; and
c. secure accounting expertise to calculate net worth under the Generally Accepted Accounting Principles, or GAAP.
3. If the amount of security will be based on the client’s current net worth:
a. assist the client and accountant to ensure the net-worth affidavit complies with Texas Rule of Appellate Procedure 24.2(c)(1);
b. ensure the necessary supporting documentation is attached to the affidavit;
c. determine if the client wants the court to seal the record containing the net-worth information; if so, pursue a court order and a protective order or confidentiality agreement with the judgment creditor;
d. post the amount of security based on net worth and file a motion to order security based on net worth, with the affidavit attached;9
e. secure a hearing as soon as possible;
f. prepare to respond to net-worth discovery from the judgment creditor;
g. ensure the hearing is on the record;
h. ensure the court’s order specifically states the debtor’s net worth and provides with particularity the factual basis for its determination;
i. if the court denies the motion, evaluate the merits of seeking appellate review under TRAP 24.4;10 and
j. if you seek review, obtain a stay of execution during the appellate process in either the trial court or appellate court.
C. Substantial Economic Harm Issues
Ask the client if posting the required security amount will “likely to cause [it] substantial economic harm,” obtaining evidence regarding the factors courts consider in determining whether substantial economic harm is likely.11
Use the assistance of accounting or economic experts, if possible.
Ask the client to identify all competent witnesses regarding the harm the client will likely suffer if the full amount of security is posted.
If the standard can be met:
a. prepare and file a motion to reduce the amount of required security;
b. set the motion for the mandatory hearing (on the record) as soon as possible;
c. ensure the court’s order complies with Rule 24.2(b);
d. if the court denies the motion, evaluate the merits of seeking appellate review under Rule 24.4; and
e. if seeking review, obtain a stay of execution during the appellate process.
D. Supersedeas Bonds
Determine whether the client has a relationship with a surety.
If not, use a surety bond broker to assist in finding a sufficient surety, after informing the broker as to the bond amount.
Once a surety is proposed:
a. explore whether the surety will require collateral, and if so, the type and amount (liquid collateral in the full bond amount is usually required); and
b. contact the appropriate department at the courthouse to confirm the surety is approved for the bond amount.
Craft the proper language for the bond.
a. Set out the amount (and how it was calculated) of:
i. the principal amount;
ii. pre-judgment interest; and
iii. post-judgment interest, the rate, and term.
b. Specify the aggregate amount of the bond and that the surety and principal (judgment debtor) are liable for the aggregate amount and no more.
c. Specify the required conditions that must be met before the surety is liable directly to the judgment creditor for the bond amount:
i. if the debtor does not perfect an appeal or the debtor’s appeal is dismissed, and the debtor does not perform the trial court’s judgment;
ii. if the debtor does not perform an adverse judgment final on appeal; or
111. where the judgment is for the recovery of an interest in real or personal property, if the debtor does not pay the creditor the value of the property interest’s rent or revenue during the appeal.12
Obtain approval of the bond according to the procedures followed by the clerk in the county of suit.
a. If you are not required to efile the bond, it is better to have the bond personally “walked” through the approval process at the clerk’s office so you or someone can:
i. observe the clerk signing the bond as approved; and
ii. ensure the bond is filed and obtain a file-marked copy.
E. Deposits in Lieu of Bond
If superseding with a deposit, draft a notice of filing deposit in lieu of bond:13
a. setting out the calculations provided above for bonds;
b. setting out the conditioning language above for bonds; and
c. requesting the clerk to place the deposit in an interest-bearing account, if available.
2. If available, prepare an order for the court to place the funds in an interest-bearing account.
3. If permitted, have the deposit14 personally remitted and have the notice and order filed to ensure the clerk approves the amount and provides the order to the court for signing.
4. Obtain a receipt for the deposit.
F. Non-Monetary Judgments
1. Assist your client to determine:
a. the value of the rent or revenue of the client’s property interest if the judgment is for the recovery of an interest in real property;15
b. the value of the property interest as of the date of judgment if the judgment is for the recovery of personal property;16 and
c. the amount of security that will adequately protect the judgment creditor against loss or damage that the appeal might cause, if the judgment is for something other than money or interest in property. 17
2. Gather documentary support and identify any persons with personal knowledge of the foregoing values.
3. File a motion to determine the amount of security required as soon as possible and request a hearing.
4. Present evidence on the record of the foregoing values.
5. Obtain a written order finding the values and the amount of security required.18
6. If dissatisfied, proceed with appellate review.
G. Once the Appeal Is Final
1. If the judgment is reversed:19
a. When the mandate is issued, file a motion in the trial court to release the supersedeas bond or deposit.20
b. Prepare an agreed order stating:
i. the bond is released;
ii. the surety and principal are discharged and released from any obligations under the bond; and
iii. the court clerk is to return the original bond to the attorney for the judgment debtor (some sureties require the original bond before remitting the balance of the premium for the remaining bond term).21
2. If the judgment is affirmed:22
a. advise opposing counsel that your client will perform the judgment, to dissuade them from attempting to execute on the bond;
b. alternatively, attempt to settle and compromise the amount of judgment instead of providing full performance (there may be some ambiguity on what “full performance” is, values of non-monetary judgments may have changed, and it may be more convenient for the judgment creditor); and
c. once performance or settlement occurs, proceed with a motion to release the bond or deposit.
H. Conclusion
Becoming familiar with Texas supersedeas law will enable you to help your client more quickly and effectively protect its assets from execution during the appeal. For example, although a judgment creditor may not actually execute on a final judgment until 30 days after it is signed (or 30 days after a timely motion for new trial is overruled), it can initiate garnishment and turnover proceedings immediately after the judgment is signed.23 Thus, your client should supersede the judgment promptly to avoid a potential writ of garnishment or turnover order.24 TBJ

Who Needs a Supersedeas Bond in Texas State Cases?
Supersedeas bonds are typically a requirement in Texas courts to supersede a judgment while the appellant seeks to overturn a verdict on appeal.
Here are the common types of cases that require supersedeas bonds in Texas.
- 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 (click here to read our article on Appeal Bonds in Family Law Cases)








Texas Supersedeas Bonds: Surety Underwriting Requirements
Supersedeas bonds are technically an insurance product issued primarily by corporate surety companies. However, these bonds are more like an extension of credit and are therefore underwritten similar to bank loans.
Supersedeas bonds function more like financial guarantees, where the surety company guarantees to pay the judgment to the appellee up to the bond amount if the appellant doesn’t satisfy the judgment should it be affirmed on appeal.
Unlike insurance products, the appellant has to repay the surety company if the surety ends up satisfying the judgment. Because most civil appeals result in the judgment being affirmed, there is a high probability that the surety company backing the supersedeas bond will receive a claim. Given the likelihood of a claim, surety companies will often require collateral for the full bond amount.
There are exceptions to the collateral requirement, and those are generally when the appellants are publicly traded companies, banks, insurers, large private firms, municipalities, or high-net-worth individuals who meet particular criteria, such as if the appellant has a significant net worth and liquid assets relative to the bond amount. See our article, “Qualifying for an Appeal Bond Without Collateral,” for additional content.
Common forms of collateral include:
- 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 Texas, 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 a supersedeas bond without having to liquidate assets.
FAQs
How Much Does a Supersedeas Bond Cost in Texas?
The cost of a Texas supersedeas bond is determined by the premium rate set by surety companies, which are commonly in the 0.30% to 4% range based on the total bond amount and are dependent on the following factors:
- Bond amount requirement
- Type of collateral provided (if required)
- Financial stability of the appellant relative to the bond amount (if the bond is being considered without collateral)
Thus, if a surety is charging a 1% premium rate on a $2 million bond, the annual premium would equal $20,000.
Surety companies charge premiums for supersedeas bonds yearly until their liability under the bond is released. The first year’s premium is considered fully earned upon bond issuance, and the bond automatically renews on an annual basis. After the first year, if the appeal is concluded midterm, and the surety is then exonerated from liability, they will prorate the renewal premium and issue a refund back to the client.
Best Practices for Posting a Supersedeas Bond Through a Surety Bond Provider
Securing a supersedeas bond in Texas 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:
- Contact a surety bond agent early. This advantage helps the client explore all options and ensure they can file the supersedeas bond 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 State or local rules.
- Choose the right surety bond agent. You and your client 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 Texas supersedeas bonds.
Read our guide, “The Biggest Mistakes Made with Appeal Bonds,” to learn more.
Why Choose CSBA for Your Client's Supersedeas Bonds in Texas?
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 Supersedeas Bond in Texas?
If collateral isn’t required to secure a supersedeas bond, a Texas 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 a Supersedeas 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:
- Supersedeas 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)
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.
Get a Free Quote for Your Client's Texas Supersedeas Bond Today
Filing a supersedeas bond comes with strict deadlines, and securing a Texas 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.