North Carolina Supersedeas Bond (Appeal Bond ~ North Carolina)

Bond Penalty: Judicial Discretion

A North Carolina supersedeas bond (also referred to as an appeal bond or undertaking) is contemplated under several sections of the North Carolina General Statutes (NCGS), code of civil and appellate procedure. Right to an appeal is generally universal however a stay of execution may NOT be. Rule 62 addresses the supersedeas bond to obtain a stay, "(d) When an appeal is taken, the appellant may obtain a stay of execution, subject to the exceptions contained in section (a), by proceeding in accordance with and subject to the conditions of G.S. 1-289, G.S. 1-290, G.S. 1-291, G.S. 1-292, G.S. 1-293, G.S. 1-294, and G.S. 1-295. When stay is had by giving supersedeas bond, the bond may be given at or after the time of filing the notice of appeal or of procuring the order allowing the appeal as the case may be, and stay is then effective when the supersedeas bond is approved by the court."

Appellants should read and understand clearly the North Carolina supersedeas bond mechanism's creation of a stay pursuant to §1-28. Section a1 is instructive, " . . . the court shall specify the amount of the undertaking required to stay execution of the judgment pending appeal as provided in subsection (a2)", and "(a2), "the supersedeas bond that shall be required by the court shall be an amount determined by the court after notice and hearing proper, and reasonable for the security of the rights of the adverse party, considering relevant factors, including the following:

  • The amount of the judgment.
  • The amount of the limits of all applicable liability policies of the appellant judgment debtor.
  • The aggregate net worth of the appellant judgment debtor.

The penalty of the North Carolina appeal bond is also capped; "(b) If the appellee in a civil action brought under any legal theory obtains a judgment directing the payment or expenditure of money in the amount of twenty five million dollars ($25,000,000) or more, and the appellant seeks a stay of execution of the judgment within the period of time during which the appellant has the right to pursue appellate review, including discretionary review and certiorari, the amount of the undertaking that the appellant is required to execute to stay execution of the judgment during the entire period of the appeal shall be twenty five million dollars ($25,000,000)."

In all but five states, defendants wishing to appeal adverse verdicts must post a supersedeas bond. These surety bonds protect plaintiffs by guaranteeing that an appellant will have sufficient assets to satisfy a judgment if the appeal fails. Some venues allow the trial court judge to set the amount of the bond but the majority require bonding equal to the judgment plus interest and costs. The North Carolina supersedeas bond must be issued in an amount sufficient to "satisfy judgment", however a close read of the prevailing statutes is required because North Carolina has made efforts to cap those bonds in cases which include large punitive damage numbers. There is also disparity in bond requirements based on the type of appeal.

The Administrative Office of Courts provides the North Carolina supersedeas bond form generally used in appeal proceedings that require one. A secondary form has been approved by the AOC for those cases that contemplate a stay of execution on appeal to recover personal property (AOC-CVM-906M), however most appeal bonds are uniquely manuscripted to align with the appropriate statutory language a limit the surety's exposure to the penal sum of the bond.

Underwriting review and preparation of a supersedeas bond should be accomplished by a surety bond expert with knowledge of this type of judicial obligation and the specific form required by North Carolina Rules. National surety bond leader, Surety One, Inc. specializes in court bonds for all local, state and federal courts. A North Carolina supersedeas bond application submission is reviewed and responded to within one hour of receipt of the same. We are the most agile judicial bond underwriter in the United States. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here if you would like to chat live with an underwriter about your North Carolina appeal bond need.

Is your appeal from a judgment from a U.S. District Court? Visit our federal supersedeas bond page here.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Copy of judgment and complaint