Injunction Surety Bond

There are two forms of an injunction bond: a Plaintiff and Defendant bond.

The three parties of this type of court bond include the obligee, the principal, and the surety company. The obligee is the court  that is requiring the principal (plaintiff or defendant) to be bonded. The surety company is the party that underwrites and ensures the bond.

 

Plaintiff Bond

What Is This Bond For and What Does It Do?

The plaintiff (principal) must be bonded in order to cover any damages suffered by the defendant.

A plaintiff injunction bond is a specific type of court bond that covers any damages that the defendant can receive if the court rules the plaintiff’s suit wrong.  With this bond, the defendant would then be protected from being wrongfully enjoined.

The court requires the plaintiff to be bonded during a litigating case. This bond is required when the plaintiff asks the court to require the defendant to abide by specific guidelines during the course of the case. The surety bond is an agreement between the three parties that if the court finds the injunction was issued wrongfully, then the bond would cover all damages caused by the plaintiff.

 

Defendant Bond

What Is This Bond For and What Does It Do?

The defendant (principal) must be bonded in order to cover any damages suffered by the  plaintiff. These bonds are more risky to ensure compared to a plaintiff bond.

This type of court bond is also required by the court during a litigating case. When the defendant asks the court to dissolve a plaintiff’s injunction, the defendant will be required to file an injunction bond.

Also, the bond allows the defendant to choose whether or not they will perform the acts requested by the injunction filed by the plaintiff. However, if the court rules that the dismissal of the injunction should have never been granted, then the bond would cover any damagers the initial ruling would have caused the plaintiff.

 

Bond Amount and Bond Cost

The cost for the bond is also referred to as the bond premium. The bond premium is the one cost that the surety company sets. All other fees that are related to the bond are set by the obligee. The bond premium is only a small percentage of the bond amount.

The bond amount is set by the court not the surety company. The bond amount is the amount of coverage the surety company will pay out to the party harmed if a claim is filed against the bond.

3 Types of Injunctions

1. Temporary – also known as a Temporary Restraining Order (TRO) – a short term measure until a long lasting measure is decided
2. Preliminary – Issued at the beginning of an injunction to prevent a particular act and can remain valid during a pending court case (can become permanent)
3. Permanent – Issued at a final judgment

 

Requirements

Surety1 does not write injunction bonds that involve: family disputes, neighbor disputes, or foreclosures.

This type of bond is solely based off of personal credit. Our markets require that your FICO to be 650 or above. Surety1 only runs a soft inquiry on your credit, meaning that the pull will not affect your credit score.

Please note that an injunction surety bond requires that an attorney is involved with the case.

In order to find out if you qualify for an injunction surety bond all we need is a completed online application.

 

All 50 States

We are licensed surety experts for all 50 US states. We can get you set up with a court bond no matter what state, county, or city you live in.