Many states cap supersedeas bond amounts, frequently at a defined dollar figure or a percentage of net worth, to permit appeals of large judgments without requiring full security.
Caps were adopted following judgments exceeding defendants' capacity to bond.
Alternative Names:
Bond Cap, Appellate Bond Limit
Why it Matters?
Without a cap, a judgment exceeding a defendant's ability to bond forces settlement regardless of appellate merit, which is the problem caps address. Cap availability and amount vary substantially, and some statutes limit the cap to defendants demonstrating that full bonding would cause insolvency. Confirming the applicable cap before judgment enters is part of appellate planning rather than a post-judgment scramble.
Frequently Confused with
Related terms
Frequently asked questions
What problem do bond caps address?
Do caps apply automatically?
