Judicial Bonds

August, 2000

Court Bonds

|Summary: Judicial bonds are contracts of suretyship prescribed by statute and filed in probate or courts of equity. They are used for many types of proceedings. Generally, however, a judicial bond guarantees that a person, firm, or company (the principal) will fulfill certain obligations specified by statute such as faithful performance or financial responsibility for the benefit of another (obligee), or the surety will be liable for damages up to the bond amount or penalty.

Judicial bonds consist of two general classes. The first are fiduciary bonds. These guarantee that persons entrusted with the care of property of others under various forms of estates will exercise their duties faithfully, account for all property received and make good any deficiency for which the courts—probate or equity—hold fiduciaries liable. For more information on fiduciary bonds, see Fiduciary Bonds.

Court bonds (sometimes referred to as litigation bonds) are the second class of judicial bonds. These are chiefly concerned with actions in equity involving antagonistic interests. For example, a court bond is often required when a party to a lawsuit seeks permission of a court to perform an act for which he claims a legal right, but which would result in an unjust loss or injury to the other party if the court ultimately decides he does not have that right. The bond, therefore, guarantees the payment of damages, court costs or both if the person bonded is unsuccessful in his action.   Topics covered:
Court bonds—classes
Plaintiffs and defendants bonds
Attachment and release attachment bonds
Replevin and counter-replevin bonds
Injunction and dissolve injunction bonds
Appeal bonds
Bail bonds
Bail bond agents
Collateral security
Bond forms

 

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