You have drafted the motion, you have the declarations, and the judge is prepared to sign. Then comes the question that catches people off guard: what bond are you posting?
In federal court, that question comes from Rule 65(c) of the Federal Rules of Civil Procedure. It is short, it is easy to miss, and it can stop an otherwise well prepared motion in its tracks. If you are working against a hearing date and need the bond in place quickly, call us at 800-333-7800 or get a free quote online. We have been writing court bonds in all 50 states since 1971.
What Rule 65(c) actually says
The rule itself is one sentence:
“The court may issue a preliminary injunction or a temporary restraining order only if the movant gives security in an amount that the court considers proper to pay the costs and damages sustained by any party found to have been wrongfully enjoined or restrained.”
Read it closely and three things stand out. The word “only” makes security a condition of the relief, not an afterthought. The amount is whatever the court “considers proper,” which means there is no formula and no cap written into the rule. And the money protects a party found to have been wrongfully enjoined, which is the whole logic of the bond. You are asking a judge to restrain someone before the case has been decided, based largely on your version of events. The bond is what makes that fair.
You can read the full text at the Legal Information Institute.
The 14 day clock changes everything
Rule 65(b) is where the time pressure comes from. A temporary restraining order issued without notice expires within a period the court sets, not to exceed 14 days. The court can extend it once for a like period for good cause, or longer if the restrained party consents.
That short fuse is why an injunction bond behaves differently from most court bonds. A probate bond can wait a few days. A TRO bond often cannot. In practice, the applicant learns the number when the judge announces it, and the bond needs to exist within hours or a day or two. The single most useful thing you can do is call your surety before the hearing rather than after, so the underwriting is already done and only the amount is missing.
Who decides the amount
The judge does, and the discretion is broad. Courts generally look at what the restrained party stands to lose if the order turns out to be wrong: lost revenue while a product is off the market, the cost of a halted project, the value of a transaction that cannot close. In a commercial dispute those figures can be substantial.
You are not a bystander in that decision. Both sides can be heard on the amount, and the record you build about likely harm is what the judge is working from. It is worth thinking about the number before you are standing at the podium.
When security is not required
Rule 65(c) names one clear exemption: the United States, its officers and its agencies are not required to give security. Beyond that, courts have recognized discretion to set a nominal amount or to dispense with security in limited circumstances. That discretion is real, but it is not something to plan around. For an ordinary commercial dispute between private parties, expect to post a bond.
What it costs and what we need
Less than most people assume. To get moving we need the case caption and number, the court, the bond amount once the judge has set it, and some basic information about the applicant or the business. If the amount is not fixed yet, we can still start, which is exactly what we recommend when a hearing is on the calendar.
On cost and collateral, there is good news for most applicants. An injunction bond is posted by the party seeking relief, which makes it a plaintiff bond. For a qualified applicant, plaintiff bonds run approximately 2 to 3 percent of the bond amount and can be approved without collateral. Defendant bonds work differently and require full collateral. Premiums on surety bonds are paid annually and in full at issuance.
Frequently asked questions
Is a bond always required for a federal injunction?
Rule 65(c) frames security as a condition of the order, so plan on it. Courts retain discretion to set a nominal amount or waive it in limited situations, and the United States and its agencies are exempt, but private parties in commercial disputes should expect to post a bond.
How much does a Rule 65(c) injunction bond cost?
The judge sets the bond amount. Your premium is a percentage of that amount, and for a qualified applicant a plaintiff injunction bond runs approximately 2 to 3 percent with no collateral required. Call 800-333-7800 for a quote on your specific situation.
How fast can a Rule 65(c) bond be issued?
Often within a day, sometimes the same day, once we have the case details and the court ordered amount. Because a TRO can expire in as little as 14 days, the sooner you contact us the better.
Does the bond cover the other side’s attorney fees?
That depends on the jurisdiction and the case law applied by the court. Rule 65(c) refers to costs and damages sustained by a party found to have been wrongfully enjoined, and courts differ on how fees fit within that. It is worth researching in your circuit before proposing a number.
What happens to the bond if I win the case?
If the injunction is upheld and the case resolves in your favor, there is nothing for the bond to pay and it can be released once the court discharges it. We walk clients through that step, since a bond does not simply expire on its own.
Do I need a bond for a preliminary injunction as well as the TRO?
Sometimes, and this catches people out. Some courts require a fresh bond when a TRO converts to a preliminary injunction. Tell your surety early if that is likely, because it affects how the exposure is structured.
Working against a hearing date?
Injunction matters do not wait, and neither do we. Surety Bond Authority has been writing court bonds since 1971, in every federal district in the country. Call us at 800-333-7800 or contact us and we will work through the specifics with you and keep your case on schedule.
