Florida Appeal Bond

FloridaFlorida state added a new bill concerning a cap on appeal bonds. The new bill, titled SB 2198, modifies the present cap on appeal bonds for civil actions filed in relation to the state’s tobacco settlement agreement. The present law caps the appeal bonds at $100 million for appeals or discretionary appellate reviews for all defendants. SB 2198 requires the surety bond to cover any reviews that the U.S. Supreme Court performed. The cap pertains to the collective value of all appeal bonds for the appeals process. Additionally, the surety bond covers “all appellants” as oppose to “all defendants.” In regards to civil actions in the trial court that were caused by or on behalf of individuals claiming or determined to have been members of a previous class action that was decertified, SB 2198 supplies a schedule for the quantity of security required for all appellants who cooperatively look for a single judgment. The schedule is below:

Number of Judgments Amount per Judgment Total Amount
1 – 40 $5,000,000 $200,000,000
41 – 80 $2,500,000 $200,000,000
81 – 100 $2,000,000 $200,000,000
101 – 150 $1,333,333 $199,999,950
151 – 200 $1,000,000 $200,000,000
201 – 300 $666,667 $200,000,100
301 – 500 $400,000 $200,000,000
501 – 1,000 $200,000 $200,000,000
1,001 – 2,000 $100,000 $200,000,000
2,001 – 3,000 $66,667 $200,001,000

In most of these cases, the cap is established at $200 million, or an estimate thereof, and the quantity is separated between the amount of appellants. The surety bond must be in the lesser amount of the judgment quantity or this cap.

For cases with numerous defendants, appellants are required to acquire individual appeal bonds in proportion to the “percent or amount of liability specifically allocated against that appellant in the judgment, or, if liability is not specifically allocated in the judgment, for a share of the unallocated portion of the judgment determined by dividing the unallocated portion of the judgment equal among all defendants against whom the judgment is entered.”

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

Leave a Reply

Your email address will not be published. Required fields are marked *