The Necessity of Civil Court Bonds

A civil court bond guarantees that the losing party will comply with the court’s order. The purpose of a civil court bond is to protect the interests of the opposing party to the lawsuit. A California civil bond is a contract between three parties – the Principal, the Surety and the Obligee.

Different types of civil court bonds include Appeal bonds, supersedeas bonds, bonds for Writ of Attachment, TRO/Preliminary Injunction bonds, and replevin bonds.

An appeal/supersedeas bond is required when the Defendant in a case asks a higher court to review the decision of a lower court. It guarantees that the person will fulfill their obligations if the lower court’s judgment is upheld.

A litigant is required to obtain a Preliminary Injunction/TRO (temporary restraining order) bond when they want to stop the opposing party from engaging in an act. A TRO bond guarantees compensation to the enjoined party for damages if it is later found that the TRO was wrongfully issued.

A replevin bond is required when a Defendant claims that they have good title to a property owned by the Plaintiff. It allows the defendant to take possession of the property before a trial begins and guarantees that they will return the property to the Defendant if the court rules in their favor.

To obtain a civil court bond, you must provide a copy of the lower court judgment and collateral, if required. Fill out an application and submit it and the executed indemnity agreement to the Surety.

Many Sureties require Principals to provide an ILOC (irrevocable letter of credit) as collateral. An ILOC can be obtained through the Principal’s bank. This process should be completed as soon as possible as the Surety will need time to assess the bank’s financial strength and study the ILOC.

After you file your application, the Surety may ask you to provide important information about your bank including its name and address. They may also need a draft of the ILOC. You will be required to submit the original ILOC once the bank approves it. The cost of a court bond depends on several factors such as the type of bond, the state in which the case is filed, and the principal’s financial health.

A Surety bond agency that has access to multiple carriers and a storied history (like H.M. Vreeland) can help you get the best deal. Look for an agency that specializes in civil court bonds, knows the ins and outs of the underwriting process, and can help you lower your premium.

H.M. Vreeland is a premier surety bond company serving the state of California. We have more than 100 years of experience meeting the bonding needs of businesses in California. Need a fiduciary bond? Call (415) 566-3401.