An injunction is a court order requiring the defendant to refrain from performing an act that would be harmful to the plaintiff’s interests. For example, an injunction would be put into place if the plaintiff is feeling they are being damaged by the wrongful activity of the defendant. The plaintiff must allege that the decree is necessary as protection against irreparable damage. At the beginning of the lawsuit, the inappropriate conduct will be ceased because of a preliminary injunction that will be put into place by the court, which will prevent certain conduct and remain in effect during a pending court case. The preliminary injunction may or may not become a permanent injunction that is issued as final judgment and will preserve the conduct permanently. If the defendant does not abide by the injunction, then they could face stiff monetary penalties or even imprisonment. In the case where the plaintiff is found to be wrongfully accusing the defendant, they would find protection form the the Injunction Surety Bond that the court had required from the plaintiff.
An Injunction Bond is a type of court surety bond that will cover any damages that the defendant may sustain if the court rules that the plaintiff’s suit was wrongful. Unlike most plaintiff’s bonds that are entirely voluntary, a plaintiff’s injunction bond is considered involuntary since it may be necessary and court-required. “Involuntary” is normally a term that describes defendants’ bonds and an injunction bond is subject to following the underwriting rules that are usually applied to defendant bonds. Due to this, Injunction bonds are considered to be much more hazardous than other types of plaintiff’s bonds because of the large damages may result from a wrongful, or legally improper injunctions. In order to assess the extent of possible liability properly, the underwriter must obtain a copy of the injunction and the complete, corresponding facts of it.
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The cost for an injunction court bond varies depending on the bond amount, the relatively facts surrounding the case, and the financial strength of the person or entity obtaining the bond. The bond amount is set by the court and which court system is requiring the bond. After a review of the bond underwriting information, the bond rate and the bond premium can be determined. Typically, a plaintiff will pay between 1%-3% of the injunction bond amount. So, the bond cost for a $100,000 injunction bond would range from $1,000 - $3,000.
An Injunction Surety Bond is required of the plaintiff by the courts when they are seeking a court order for a temporary injunction and then permanent injunction. This injunction bond is in place to prohibit the defendant from engaging or carrying out a specific act. Before an injunction can be granted, the court requires the plaintiff to post an injunction bond so there is a guarantee that the plaintiff will pay court fees, costs, and damages sustained by the defendant.
Some surety bonds have an obligation to be renewed every year or every other year as part of the licensing requirement. Unlike those bonds that must be renewed, court bonds, such as an injunction bond, are required per case where the plaintiff is requesting an injunction against another party. The bond premium or cost of the bond is charged upfront and then annually until the bond has been released by the court.
Simply fill out our court bond application and provide the court documents to us. Our surety experts at The ProSure Group will provide a very quick turnaround on this important and typically urgent bond need. With over 24 years of expertise in the field of surety bonds, we will be sure to provide you with the best service and most competitive pricing available in the marketplace.