Court bonds is an umbrella term that covers surety bonds for a broad range of legal proceedings. Court bonds help protect participants in legal matters against fraudulent activities or use of finances.
Simply put, court bonds are used to minimize losses resulting from a court ruling or to ensure compliance with court-mandated actions.
Court bonds can be split into two sub-categories: judicial bonds and fiduciary bonds. Judicial bonds protect involved parties against the uncertainties involved in many proceedings. Typically, they are intended to limit the losses that could result from a court ruling. Fiduciary bonds are designed for circumstances when the court appoints an individual to care for others or manage another’s assets. These bonds ensure that the court-appointed caretaker ethically adheres to their legally designated duties.
Here are some of the most common types of judicial bonds:
For individuals who are involved in an appeal, this surety bond may be required to guarantee payment of courts costs to the winning party.
For people who have been arrested, this surety bond enables the person to be released from jail by ensuring that the individual will appear for his or her court date. If the individual fails to appear in court, the bond amount is forfeited to the court.
For owners of private property that have been condemned for public use, a Condemnation Bond assures the private property owner they will be paid whatever price that the court has determined.
Is a plaintiff surety bond that guarantees that the plaintiff (nonresident of the jurisdiction) will pay all the court expenses in the litigation.
For defendants, that wish to take physical possession of disputed assets before going to trial. By utilizing a Counter Replevin Bond, the plaintiff can have security that if they prevail in the case, they will receive their assets in favorable condition.
For defendants, this type of judicial bond intends to garnish a defendant’s wages, assets or bank account balances until a case has been decided by the court.
This is a bond required by non-U.S. Citizens that has been detained/jailed by the Department of Homeland Security.
This surety bond that guarantees protection to law enforcement agencies seizing property on orders of the court on behalf of a plaintiff from a defendant.
This is a bond required by the plaintiff in an Injunction Civil case. The bond guarantees that the plaintiff will indemnify the defendant against any damages sustained as a result of the injunction if the court decides the injunction wrongfully restrained the defendant.
For plaintiffs wishing to block the sale of a property, this surety bond serves as a guarantee that they have filed a claim on the sale of a property and done it in good faith or not under false representation.
For plaintiffs who wish to attach the defendant’s property to a pending claim, this surety bond guarantees that the plaintiff will pay damages if the court finds that the property was wrongfully taken from the defendant.
For defendants that wish to counter an Attachment Bond that has been purchased by the plaintiff. The Release Attachment Bond allows the defendant to retain possession of the assets until the case has been decided by the court.
For defendants of Lis Pendens lawsuits, this type of surety bond guarantees to cover the costs associated with the Lis Pendens to release the property back to the defendant selling a property.
For plaintiffs, that want to take physical possession of disputed assets before going to trial. By using a Replevin Bond, the defendant can be assured that if they win the case, they will receive their assets in good condition.
For plaintiffs, this bond guarantees that if the sequestration is deemed wrongful or malicious, the defendant should be able to collect fees and damages.
For losing parties in a civil lawsuit who wants to appeal the judgment against them, this type of court bond allows them to become appellants in higher courts where they can have a stay of judgment and do not have to pay the judgment amount until after the final ruling.
Is a "short term" injunction bond that provides protection to a defendant against possible loss should the court rule that the temporary restraining order was illegal or unnecessary in the litigation.
Here are some of the most common types of fiduciary bonds and probate bonds:
For administrators, an Administrator Bond guarantees the faithful and ethical performance of court-appointed duties in handling an estate (real and personal property) of a deceased without a will.
For court-appointed bankruptcy trustees, this surety bond ensures faithful performance of duty by court-appointed trustees in bankruptcy proceedings, protects creditors' interests, and provides debt relief to debtors.
For non-custodial parents, this type of surety bond is required by family courts to act as a safety measure in protecting children and ensuring that they return to their habitual residence and their parent in custody.
For court-appointed custodians, this surety bond is often required to ensure that the custodian provides proper care to the individual and his or her finances according to the court’s expectations. The terms custodian bond and guardianship bond are often used interchangeably.
For the executor of an estate, this surety bond guarantees that the estate is managed according to the terms of the deceased’s will.
For legal guardians, this surety bond requires that the guardian will care for another individual and ethically manage his or her property and finances according to court expectations. The terms guardianship bond and custodian bond are often used interchangeably.
For parents in a child custody dispute, this surety bond serves as an assurance that the other parent will adhere to the child custody agreement while traveling with the child(ren) overseas and return them back to their habitual residence under U.S. jurisdiction.
For creditors who are forcing a bankruptcy proceeding so that they will compensate the debtor for all possible damages and costs should the court dismiss or withdraws the petition.
For court-appointed receivers, this type of fiduciary bond is required to be appointed as a receiver and guarantees the faithful performance of a receiver's fiduciary obligations in compliance with court rules and state statutes in managing financial and real property assets.
For trustees who are legally appointed in managing estates of a minor, deceased or incapacitated, this type of court surety bond ensures that they perform their duties and obligations in a legal and ethical manner in compliance with court instructions.
For legal custodians, this type of court fiduciary bond is required by the state and federal courts to ensure that veteran beneficiaries are able to properly manage their funds and real estate properties through the aid of a VA custodian.
For friends and family members of veterans who are acting as a fiduciary, this surety bond provides protection to the disabled veteran. This allows him or her to retain control over his finances, estates, and benefits without having to pay large fees charged by fiduciaries that work for the court.
Check out our Court Bond Infographic that gives a great overview of court surety bonds.