Injunction Bonds
What is an injunction?
An injunction is a court order that requires someone to do or refrain from doing a specific action either temporarily or permanently. Courts use injunctions in special cases – often to prevent a defendant from continuing a course of action that leads to irreparable harm or injustice to the plaintiff (Legal Information Institute).
There are three types of injunctions:
- Temporary injunction: This injunction is a temporary restraining order that a judge can issue to prevent a defendant from continuing a harmful action. This is a short-term, pre-trial solution and only lasts until a court decides whether to issue a preliminary injunction.
- Preliminary injunction: A preliminary injunction may be granted before or during a trial – after a hearing. The goal is to preserve the status quo before final judgment.
- Permanent injunction: This injunction is issued as a final judgment when monetary damages (compensation) aren’t sufficient.
Plaintiffs may apply for an injunction to stop the defendant from performing a specific action. In some cases, a plaintiff may be required to purchase an injunction bond before being granted an injunction.
A defendant is the party sued or accused in a court of law. A plaintiff is the party bringing a case against the defendant.
Get Your Injunction Bond:
Quick Takeaways
- Injunction bonds are court bonds that plaintiffs must obtain before the courts will grant them an injunction.
- An injunction bond ensures that a plaintiff pays any court fees, damages, or other related costs associated with an injunction they should never have been granted.
- If the defendant suffers damages, they can file a claim on the plaintiff’s bond.
- You may need a bond if you’re seeking a preliminary injunction or a temporary injunction.
- Bonds aren’t required for permanent injunctions but often required until a permanent order is filed.
- It’s essential to purchase your bond immediately to avoid delaying the hearing.
What are injunction bonds?
Injunction bonds are court bonds that plaintiffs must obtain before the court will grant them an injunction. In these types of cases, the plaintiff’s goal is to prevent the defendant from carrying out a specific action. The bond protects the defendant if the court determines that the plaintiff should never have been issued an injunction in the first place. If the defendant suffers damages as a result, they can file a claim on the bond.
This bond can go by other names, such as a plaintiff’s bond or a restraining or temporary restraining order bond.
What is the purpose of an injunction bond?
An injunction bond ensures that a plaintiff pays any court fees, damages, or other related costs associated with an injunction they should never have been granted. It protects the defendant in the case from damages that can result from an unnecessary injunction. Fighting an injunction can be costly. A bond can help a defendant recover.
In short, the purpose of an injunction bond is to prevent unmerited injunctions.
Frequently Asked Questions
Who needs an injunction bond?
If you’re a plaintiff seeking a preliminary injunction, you most likely will need an injunction bond. You may also need an injunction bond to file a temporary injunction. Bonds aren’t required for permanent injunctions but often required until a permanent order is filed.
Your judge will inform you of your injunction bond requirement and the amount of coverage you need. It’s essential to purchase your bond immediately to avoid delaying the hearing.
How does an injunction bond work?
An injunction bond is a three-party agreement between a principal, an obligee, and a surety.
- Principal: The plaintiff required to obtain the bond
- Obligee: The defendant in the case and potential bond beneficiary
- Surety: The company that issues and backs the bond
If the defendant files a valid claim against the plaintiff’s bond, the surety will pay the defendant to cover any damages the plaintiff caused. The plaintiff will then be held responsible for paying back the surety in full – plus interest and fees – for all claim-related costs.
How much does an injunction bond cost?
The court will set your injunction bond coverage requirement, and you will pay a small percentage of that amount as your bond premium. The amount will depend on the specific injunction order and state statutes. Typically, the better your credit score is, the lower your premium rate will be. You can expect to pay 2-3% or less of the bond if you have good credit and don’t post collateral.
Depending on your creditworthiness, you may or may not need collateral in addition to a surety bond. If your bond requires collateral, the cost of your bond will typically be 1% of the coverage amount.
How quickly can I get my injunction bond?
In some cases, we can issue your injunction bond the same day you apply. However, more complex cases can take longer. Contact ZipBonds by calling 888-435-4191 to get bonded as quickly as possible.
Do I need collateral for an injunction bond?
If you need a preliminary injunction bond, you may be required to put up collateral worth some or all of the bond’s value. Collateral may also be required if you have a lower credit score.
How to Get an Injunction Bond in Your State
To successfully apply for an injunction bond, we may ask for the following documents: a copy of the motion or complaint, a copy of your court order approving an injunction, financial documents, and collateral (in some cases).
You can complete your application online or call 888.435.4191 to apply quickly over the phone with one of our agents. We offer the fastest and most secure option for bonded, and our all-digital platform is intuitive and straightforward. Apply today!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.