Understanding Different Types of Court Bonds

If you are involved in a lawsuit or court proceeding, the court may instruct you to obtain a court bond, a type of surety bond, which guarantees that you will comply with the court’s order or judgment. The cost of a court bond usually depends on the type of bond, the jurisdiction, the amount of coverage required, and the applicant’s creditworthiness, and can vary from 0.5-4 percent of the bond amount.

How to Obtain a Court Bond?

A surety bond company or insurance agent can provide a quote based on your situation. They can also help you understand the process and requirements you need to meet to obtain a court bond. Your chosen surety bond company will share an application form with you. Complete the form and submit it to the surety’s office.

Your surety will check your credit history to determine your creditworthiness and assess the risk they will take by issuing the bond. Depending on the amount of the bond and the perceived risk, collateral may be required. If approved, you’ll need to pay the premium for the bond to the surety bond company. Bond premiums are generally a percentage of the bond amount and is non-refundable during the initial term.

Once the premium is paid and any other requirements are met, the surety bond company will issue the bond. The bond will then need to be filed with the court or any other relevant authority. Certain court bonds may require periodic renewal until the case or situation concludes. Stay informed about any renewal requirements. When the bond is no longer needed, you can request the surety bond company to cancel it with proper exoneration documentation.

Types of Court Bonds

There are several types of court bonds, each serving a specific purpose. Here are some common types:

Probate Bonds

Are also known as fiduciary bonds or executor bonds. If you have been appointed as an administrator or executor of an estate, the court may require you to obtain a probate bond. A probate or fiduciary bond acts as a guarantee that the principal will perform their legal duties diligently and take steps to protect the financial interests of the beneficiaries. If they fail to do so, one or more beneficiaries can file a claim against their bond.

Appeal Bonds

If a party in a lawsuit wishes to appeal a court judgment, they may be required to post an appeal bond. A California court appeal bond guarantees that if the higher court upholds the lower court’s judgment, the defendant will pay the original judgment. Many lawsuit parties challenge a lower court’s decision in the upper court to delay the judgment. The purpose of appeal bonds is to protect the court from frivolous lawsuits. Expect to pay 1-4 percent of the bond amount for a California court appeal bond.

Guardianship & Conservator Bonds

An individual appointed as a guardian of a minor or incapacitated person may be required to obtain a guardianship bond. This type of bond protects the interests of the ward and helps ensure that the guardian acts lawfully, carries out their responsibilities, and makes the best decisions on the ward’s behalf.

Injunction Bonds

A court may require a party seeking an injunction to post an injunction bond. If the injunction is later found to have been wrongfully issued, the aggrieved party may file a claim against the bond to recover damages.

Replevin Bonds

If a plaintiff in a civil lawsuit that was filed to urge the court to resolve a property dispute claims that they are the rightful owner of the property in question, they may be required to obtain a replevin bond before they could repossess the property. The bond protects the defendant’s interests by guaranteeing that if they win the case, the plaintiff will return them the property.

Attachment Bonds

An attachment bond is required when a plaintiff seeks a prejudgment attachment of a defendant’s property. The bond protects the defendant from potential damages resulting from the attachment if the court ultimately rules in their favor.

Release of Lien Bonds

If you want to have a lien placed on your property removed, you may need to obtain a release of lien bond. When you obtain a mechanic’s lien release bond, the liability transfers from your property to the bond itself.

Do Court Bonds Have an Expiry Date?

No, court bonds typically have no expiry date. A court bond may last a year or more depending on the type of proceeding. Generally, court bonds can only be cancelled by way of a court Order or other agreements of bond exoneration by the bond obligee.

Here are some factors to consider:

Legal Requirements

Check the terms of the court Order requiring the bond and any relevant laws or regulations to determine if is the bond is mandatory or optional.

Financial Considerations

Evaluate the cost of the bond compared to the potential consequences of not having it, if optional. In some cases, failing to obtain a court bond could result in legal penalties or other financial liabilities.

Court Orders

If a court has issued an order requiring you to obtain or maintain your bond, failing to keep the bond current could lead to court or other legal consequences. Failure to adhere to court orders regarding bond maintenance could jeopardize your legal standing and lead to further legal complications, underscoring the importance of timely renewal and compliance with court directives.

H.M. Vreeland is on a mission to make the process of obtaining a surety bond as simple and straightforward as possible. We help our customers choose the right type of surety bond for their situations and obtain it. Need help obtaining a California court appeal bond? Call 415-566-3401.