Civil Lawsuits and Court Bonds: An Overview
Simply put, a civil lawsuit is a legal dispute between individuals, businesses or government entities. Instead of prosecution for criminal charges, a civil lawsuit seeks resolution of a private dispute through compensation, enforcement of an action or the ceasing of an action. Personal injury claims, breach of contract cases and property disputes are common examples of civil lawsuits. Because these lawsuits can take months or years to resolve, pending the final outcome, the parties involved may ask judges to take an immediate, temporary action, like freezing a bank account or pausing a construction project. Before issuing such an order, judges typically require a surety bond, known as a court, or judicial bond, which guarantees that if the remedy ultimately harms the opposing side, there is money set aside to pay them back.
Types of Civil Lawsuits
At Van Elswyk Law, attorney Brice Van Elswyk explains that civils lawsuits cover a wide range of disputes and categorizes these common types:
- Personal Injury Claims: These cases involve injuries caused by someone else’s careless actions. Car accidents, slip and fall incidents, and medical malpractice are just a few examples. If you’ve been hurt, you may be able to recover compensation for medical bills, lost income, and emotional distress.
- Breach of Contract Cases: When someone fails to honor the terms of an agreement, it can lead to financial losses and legal action. Breach of contract cases may involve anything from business deals to home improvement agreements. Sometimes the goal is money damages, but other times, the court may order the person to fulfill their original promise.
- Property Disputes: Property conflicts often involve disagreements over boundaries, property damage, or rental agreements. Whether it’s a dispute with a neighbor, a landlord, or a previous property owner, the outcome can affect your rights and property value.
A civil suit is about resolving a disagreement or making a wrong right–not about sending someone to jail. In a civil lawsuit:
- The Plaintiff is the person or company that feels wronged and initiates the lawsuit.
- The Defendant is the person or company being sued.
- The Remedy is almost always financial compensation (damages) or a court order forcing someone to do (or stop doing) a specific action. Examples of civil court remedies include:
- Compensatory damages: This covers the direct losses…suffered, like hospital bills, lost wages, or costs to repair property.
- Punitive damages: In rare cases where someone’s behavior was especially harmful, additional damages may be awarded to punish the wrongdoer.
- Injunctions: Sometimes, the court orders someone to do or stop doing something, such as removing a structure from disputed property.
What Are Court Bonds and How Are They Used In Civil Lawsuits?
When a judge oversees a civil dispute, they often require one of the parties to secure a type of surety bond known as a court bond (or sometimes referred to as a judicial bond or a civil court bond). Essentially, a court bond is a financial guarantee that the party required to obtain it will fully obey a judge’s orders, and meet their legal and financial obligations during a lawsuit. If the person holding the court bond breaks the rules or loses the case and refuses to pay, the bond ensures the compensation legally owed to the other party is paid.
A court bond is a legally binding contract involving three players:
- The Principal: The party the judge orders to obtain the bond as a guarantee of financial accountability.
- The Obligee (The Court/Opponent): The legal system on behalf of the opposing party who is being protected by the bond.
- The Surety (The Bond Company): The neutral financial institution that secures collateral from the Principal, and guarantees the availability of funds to pay the judgment.
The Cost of Court Bonds
The specific bond amount and terms of judicial court bonds are set by civil courts, based on the type of case, the total value of the assets being protected, and the legal protocols of that state.
Obtaining a court bond is very similar to getting a loan or an insurance policy. The person required to get the bond does not usually have to pay the full face value of the bond out-of-pocket. Instead, they pay a premium—usually a small, non-refundable percentage of the total amount (typically 1% to 2%).
However, because active lawsuits are highly unpredictable, the bonding company will frequently require the applicant to put up collateral (like cash, property, or a letter of credit) to back up the bond. This ensures that if the bonding company has to pay out a claim because someone broke a court order, they can use that collateral to reimburse themselves.
Specific Types of Court Bonds Used In Civil Court Cases
Court bonds are sometimes categorized as plaintiff bonds or defendant bonds. For example, a plaintiff who is seeking a remedy, like an injunction or attachment, can be required to obtain a bond for the protection of the defendant until an official judgment is made.
On the other hand, a defendant seeking to block action through an appeal, may be required to post a bond for the protection of the plaintiff.
In the experience of Colonial Surety Company, a U.S. Treasury-Listed and direct writer of court bonds in every state, the types of court bonds frequently required during civil litigation are:
- Appeal Bond: Guarantees payment of the original judgment if an appeal of the decision fails.
- Supersedeas Bond: Required to stay (or halt) the execution of a judgment while an appeal is pending.
- Replevin Bond: Allows the Principal to take temporary possession of disputed property before a final court decision.
- Attachment Bond: Protects a defendant from damages if their property is wrongfully seized by the plaintiff.
- Temporary Restraining Order (TRO) Bond / Injunction Bond: Protects the restrained party from loss if the court order is later found to be unwarranted.
How Can You Get A Court Bond?
Colonial Surety Company makes it easy and speedy to obtain all types of court bonds for every jurisdiction in the country.
In business since 1930, and rated “A Excellent” by A.M. Best Company, Colonial Surety Company is a direct bond writer, ensuring that specific requirements for court bonds in every state are properly met.
With Colonial Surety Company, there are never middle-player fees tagged onto court bond premiums. Our online bond service is backed by our expert in-person team.
At Colonial Surety Company most bonds can be quoted, purchased, downloaded and even e-filed in court in minutes. Cut through the red tape of court bonds following our four simple steps:
- Simply select the specific bond you need from our extensive online bond library.
- Receive an instant quote.
- Complete the brief application and post collateral using our convenient and secure options.
- Download or print your court-ready bond.
Civil Law Practice?
In addition to providing court bonds directly to the general public, Colonial Surety Company offers The Partnership Account® for Attorneys. This free business service provides user-friendly client management dashboards, enabling attorneys to easily obtain, coordinate, and e-file all the court and fiduciary bonds clients need. See for yourself today:
