What is an Injunction?
A court injunction is a judicial order that requires a person to do or stop doing something.
Plaintiffs can apply for a court injunction which requests the judge to prohibit the defendant from engaging or carrying out a specific act. Injunctions can also order the defendant to stop doing something that is damaging to the plaintiff.
There are three types of injunctions:
- Temporary injunctions: Commonly known as a temporary restraining order or TRO. These are meant to be a short-term measure until something more long-lasting can be issued (such as a preliminary injunction).
- Preliminary injunctions: Issued at the beginning of a lawsuit to prevent certain conduct, and remain in effect during a pending court case. These can sometimes turn into permanent injunctions.
- Permanent injunctions: Issued as final judgements in a case, and preserve conduct permanently.
Before an injunction can be granted, the court might require the plaintiff to purchase an Injunction Bond.
What is an Injunction Bond?
An Injunction Bond is a type of surety court bond that guarantees that the plaintiff will pay court fees, costs, and damages sustained by the defendant if the court decides the injunction should not have been granted.
Should a defendant suffer damages due to an injunction and the plaintiff does not pay these damages, the defendant can make a claim on the Injunction Bond.
The Bond Claim Process
If a claim is filed against the plaintiff's bond, the surety company expects the plaintiff to take care of the claim. If the plaintiff fails to do this, the Surety will usually start an investigation to determine the claim’s validity. They will reach out to both the plaintiff and the defendant.
One of two things will happen:
- The surety company will investigate the claim and determine it to be invalid. No further action will be taken with the investigation, but the plaintiff might be liable for any costs the Surety incurred during the investigation process.
- The surety company will investigate the claim and determine it to be valid.
If the surety company finds the claim to be valid, they will remind the plaintiff of their obligations under the bond and ask the plaintiff to settle the claim. Usually this involves compensating the defendant for any financial loss or damages incurred.
If the plaintiff fulfills the claim, the claim process ends.
If the plaintiff fails to fulfill the claim, the surety company will step in and pay the claim for the plaintiff. The surety company will then go to the plaintiff for reimbursement of the settlement and any legal costs associated with it.
This is one way a surety bond differs from an insurance policy. While an insurance company does not expect to be paid back for a claim, a surety company does. In the case of Injunction Bonds, the plaintiff is responsible for cooperating with the surety company during the entire claim process. The plaintiff is also responsible for paying back the surety company every penny they pay out on a claim, including all costs associated with the claim.
How to get an Injunction Bond
To get an Injunction Bond, you will need to work with a surety bond company.
If you work with a reliable surety bond company who can professionally walk you through the bonding process, getting an Injunction Bond can be possible. Having an expert on your side to assist you in determining the bond amount and processing your bond can be an indispensable part of your court process.
Need an Injunction Bond?
Contact Surety Solutions to see if we can help get you bonded.