No one wants to be involved in a lawsuit. It does not matter if you are the plaintiff or the defendant in the law suit. A lawsuit means that something has not gone the way it was supposed to. It means that at least one person is so unhappy with the way things want, that they feel they deserve to be compensated for their troubles. If something has gone so wrong that the two parties involved have to go to court, it means that there have been a lot of issues leading up to it.
In a civil trial there is a winner and a loser. If the defendant wins the lawsuit, they will not have to compensate the plaintiff for whatever the plaintiff said was done wrong. If the plaintiff wins, the defendant will have to compensate the plaintiff and will be awarded damages.
In a lawsuit the winner and loser is determined by a preponderance of the evidence. That means that one person was more likely to be right than the other. IT can be the slightest little thing that weighs in that tilts the scale to one side or the other. Because of this, not everyone agrees with the decision that comes from the lawsuit. If a defendant is found liable, they will often appeal the decision to another court.
Using an Appeal Bond
When an appeal is made, the defendant has to guarantee that they will pay the damages that were awarded in the original lawsuit. They can put the cash into an escrow account if they want or they can purchase an appeal bond. The appeal bond is used to guarantee the payments of the damages that have been awarded. It requires the defendant to pay a percentage of the amount of the bond as a fee. If the defendant wins the appeal, the bond will go uncollected. If the defendant loses the appeal, the bond will pay the damages and the defendant will at some point have to make good on the bond.
Why use an Appeal Bond
Some will wonder why should you pay a fee for a bond that you may or may not need. Even if you use the bond, you will still have to repay it. You will be out the damages of the lawsuit and the fee of the bond. If you win, you will have spent money on a bond that you did not need. If you put the cash in an escrow account, you can avoid the fees. If you lose the damages will be paid. If you win, you can get your money out of escrow and collect any interest that was earned.
The one thing to consider is the time that an appeal can take. Many lawsuits drag on for periods of years. During that time, if you used an escrow account,you will not be able to touch the money in it. The appeals bond allows you to continue to fight the lawsuit without tying up excessive amounts of cash. The cost of the bond is mitigated by the time factor of a lawsuit and the appeal process.
Where to get an Appeal Bond
An appeal bond is often thought to be an insurance policy. It is not. An insurance policy requires you to pay regular premiums. When you collect on an insurance policy, you do not have to repay the money that you collect. An appeal bond charges a percentage of the bond amount. If the bond is collected, it will have to be repaid by the person that bought the bond.
Lawsuits are not fun and they require a lot of money to contest. It is always a good idea to make sure that you do not tie up all of your cash when you are involved in a lawsuit. If you lose your lawsuit and start the appeal process, the best way to save your cash is through an appeal bond. It may be the best way for you to get the verdict that you want.