Court / Judicial
Cost Bond
A cost bond guarantees that a party to a lawsuit or appeal will pay the court costs the court later orders them to pay.
- Required by
- Trial and appellate courts, by rule or court order
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the opposing party, and sometimes the court clerk, that court costs taxed against the principal will be paid. Courts most often require it from an appellant or from a plaintiff who lives out of state. A claim arises when costs are taxed against the principal and go unpaid.
Who needs it
- Appellants in civil appeals when the trial court orders security for costs
- Out-of-state plaintiffs where local law requires security for costs
- Parties in attachment or other proceedings that call for cost security
What the underwriter looks at
- Amount set by the court
- Credit and financial strength of the party
- Whether collateral is offered
- Strength and posture of the case
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Is a cost bond the same as a supersedeas bond?
No. A cost bond covers court costs only. A supersedeas bond covers the full judgment and stops collection while you appeal.
Who decides the amount?
The court sets it by order or rule. In federal civil appeals, Federal Rule of Appellate Procedure 7 lets the district court require a bond for costs on appeal.
Does every state require one from out-of-state plaintiffs?
No. It varies by state and has changed over time, so check the current rules for the court where the case is filed.