Court bonds are surety bonds required in connection with legal proceedings. Courts may require them to protect the interests of parties involved in litigation or to ensure that individuals appointed to manage assets on behalf of others act responsibly. They typically apply before a case can proceed, before an appeal is heard, or before an individual can serve in a fiduciary role such as executor or guardian.
Our experienced team can help you obtain the court bonds that you need. Contact us today for more information.
What is a Court Bond?
A court bond is a type of surety bond that falls into one of two main categories: fiduciary bonds and judicial bonds. Fiduciary bonds guarantee that a person appointed by the court, such as an executor, administrator or guardian, will manage assets ethically and in accordance with the law. Judicial bonds are required of a plaintiff or defendant during litigation and help limit financial loss tied to a court ruling or action, such as an appeal or the seizure of property.
There are three parties to a court bond, the principal, obligee and surety. The principal is the individual or party required to secure the bond, the obligee is the court or party the bond protects, and the surety is the company that issues and financially backs the bond. If the principal fails to meet the bond’s requirements, whether by mismanaging assets or failing to satisfy a judgment, a claim may be filed against the bond. The surety investigates the claim and may compensate the affected party up to the bond amount, after which the principal must reimburse the surety.
Court Bond Examples
There are many types of court bonds, including:
- Fiduciary bonds, such as executor, administrator and guardianship bonds
- Appeal bonds
- Injunction bonds
- Attachment bonds
- Replevin bonds
Other types of court bonds may be available depending on the case and jurisdiction. Contact your agent for details.
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Our knowledgeable team can help you secure the court bonds that suit your legal needs. Contact us today to get started.