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MGA for Federally Authorized Surety Companies — Alabama Practice

The Alabama supersedeas bond. Statutory and capped.

Alabama caps supersedeas bonds at the lesser of 125% of the judgment or $125 million under Ala. Code §6-12-2 — one of the higher statutory ceilings in the country. We write Alabama appeal bonds in every Alabama Circuit Court of Appeals district, the Court of Civil Appeals, the Alabama Supreme Court, and the U.S. District Courts for the Northern, Middle, and Southern Districts of Alabama.

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Bond Penalty

125% of judgment

Statutory Cap

$125M ceiling

Filing

Trial court clerk

Turnaround

Same-day issuance

The Plain-English Version

What a Alabama appeal bond actually does.

An Alabama judgment carries the same urgency as judgments in every state: without a supersedeas bond, the prevailing party can begin collection the day the judgment is entered. Alabama Rule of Appellate Procedure 8 governs the procedure, and Ala. Code §§12-22-70 through 12-22-72 governs the substantive requirements.

The cap is what distinguishes Alabama. Under Ala. Code §6-12-2, the bond is limited to the lesser of 125% of the judgment amount or $125 million. The cap was added by tort reform legislation to prevent the bond requirement from foreclosing appellate review in large-judgment cases, particularly those arising in product liability and mass tort contexts.

The bond is the three-party agreement: the appellant as principal, the appellee as obligee, and Surety One as the surety standing behind the promise with real capital. Filing is with the trial court clerk; the bond stays execution by operation of Rule 8 once approved.

Statutory Framework

The rules we underwrite to.

Three bodies of authority control: Ala. R. App. P. 8 for procedure, Ala. Code §§12-22-70 through 12-22-72 for the substantive bond requirements, and Ala. Code §6-12-2 for the cap on bond amount.

Controlling Authorities

Ala.: Ala. R. App. P. 8 — Stay or injunction pending appeal — bond requirement and procedure
Ala.: Ala. Code §6-12-2 — Supersedeas bond cap — 125% of judgment or $125M, whichever is less
Ala.: Ala. Code §12-22-70 — Supersedeas bond — when authorized
Ala.: Ala. Code §12-22-72 — Form and execution of supersedeas bond

Underwriting & Process

How a Alabama appeal bond gets issued.

Alabama supersedeas bonds are collateral-typical. Full collateral equal to the bond amount is the standard requirement, accepted in three forms: cash held in escrow by Surety One, an irrevocable letter of credit from a federally insured bank, or U.S. Treasury securities pledged with an CUSIP custody arrangement. We do not accept real estate as collateral.

For applicants invoking the §6-12-2 cap, our underwriters review the judgment amount against the cap calculation to confirm the appropriate bond penalty. Filing is with the trial court clerk in the county where the judgment was entered. Most Alabama circuit courts accept e-filed bonds; we deliver bonds in PDF for same-day filing.

Questions We Hear Every Week

Alabama-specific questions.

What's the cap on an Alabama supersedeas bond?

Under Ala. Code §6-12-2, the bond is limited to the lesser of 125% of the judgment or $125 million. For most judgments, 125% is the operative number; the $125M ceiling applies only to the largest cases.

Where do I file the bond in Alabama?

With the trial court clerk in the county where the judgment was entered. Per Ala. R. App. P. 8, the trial court has initial jurisdiction over the bond approval; review by the appellate court is available if necessary.

Does Alabama have an automatic stay on appeal?

No. Alabama requires a posted supersedeas bond to stay execution. Without the bond, the judgment creditor can begin enforcement immediately after entry.

How long does an Alabama appeal typically take?

Civil appeals to the Alabama Court of Civil Appeals or the Alabama Supreme Court typically take 9-18 months from notice of appeal to disposition. The bond premium renews annually for the duration.

Can I appeal without posting a supersedeas bond?

Yes. The notice of appeal can be filed without a bond, but execution is not stayed. The judgment creditor can begin collection immediately. Indigent appellants may seek relief under Rule 24.