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Court Bonds

What are Court Bonds?

Court Bonds are a general category of surety bonds that pertain to parties involved in a legal dispute. Court Bonds are required to protect the courts and prevailing party from cost associated with court proceedings. There are several broad categories of Court Bonds.

Parties to a Court Bond

The Principal on Court Bonds can be either the Plaintiff or Defendent. Generally, the Obligee is the Court. The Surety is the third party bond company that is guaranteeing the Principal’s obligation if they lose the case.



Parties to a Court Bond - This graphic shows the Principal, Obligee and Surety Bond Company on a court bond. The background is a picture of a court with green text boxes.

Appeal Bonds

Appeal Bonds are the most common type of Court Bond. Appeals happen when a party to litigation loses their case. They can then file an appeal or request for the case to be reviewed or retried in the hope of obtaining a different verdict. Appeal Bonds protects the Non-Appealing Party if the appeal is unsuccessful.

Supersedeas Bonds

Supersedeas Bonds are required by courts when an appeal is made and the appellant does not want the plaintiff to collect while the appeal is in process. Many surety bond brokers and even some courts use Supersedeas Bonds and Appeal Bonds interchangeably, but this is inaccurate. Supersedeas Bonds guarantee that if the appellant loses the appeal, the judgement amount, including any interest, and costs will be paid. Because of this, the courts often require these bonds be written for 125% of the judgement amount.

Many jurisdictions require that the appellant Principal and surety bond company are joint and severally liable to the Obligee. These Supersedes Bonds are considered very high risk.

Injunction bonds

Injunction Bonds protect parties from damages resulting from improper injunctions. An injunction is a court order requiring a party to take action or refrain from taking an action.

An example of damages could be lost profits from a court order to stop the sales of a product while a patent dispute is tried in court.

Attachment Bond

Attachment Bonds protects a defendant for damages in the event that their property is later found to be  improperly “attached” by the courts. Attachment of property occurs to prevent make sure a property remains available should the Plaintiff prevail in a case. It is used if the court believes the defendant may dispose of, sell, or destroy a property. If the defendant prevails in a case with attachment, the Attachment Bond is there to make sure the Plaintiff can pay the damages caused by the wrongful attachment.

Dissolution Bonds and Release Bonds

Dissolution Bonds and Release Bonds both serve to counteract the Attachment Bond.

Dissolution Bonds can be obtained by Defendants when their property has been seized through attachment. The Dissolution Bond simply dissolves an attachment on the property. If the Plaintiff prevails in the case, they can simply collect on the bond.

Release Bonds

A Defendant can also obtain a Release Bond on a property seized through attachment. By posting a Release Bond, the defendant will have access to the property. However, with Release Bonds, the Attachment on the property remains. The Release Bond guarantees that the property will remain to satisfy the judgement it the defendant does lose the case.

Replevin Bond

Replevin Bonds protect defendants for damages when property was improperly returned to a Plaintiff through Replevin. Replevin is the process by which a Plaintiff formally requests the return of property they believe is being unlawfully held by a defendant.

Receiver Bonds

Receiver Bonds protect interested parties from the improper duties of an appointed Receiver. Receivers are disinterested parties who are appointed by courts and corporations to protect property. Receivers are common in bankruptcy proceedings. Receivers must generally post a Receiver Bond and manage affairs, protect and distribute assets according to court direction. If the Receiver fails to do so properly, a claim can be made on the Receiver Bond.

Some people refer to court bonds and probate bonds in the same category, although they are different.

How to Get a Court Bond

Court Bonds are considered high risk by surety bond underwriters. Usually they required the Principal to submit a completed application and copies of the court order and case documents. They also typically required the Principal to submit financial statements. Depending on the financial strength and likelihood of winning the case, collateral may be required. Corporations and strong individuals can usually get these court bonds without collateral, however.

Indemnity Required

Like all surety bonds, Court Bonds require indemnity. That means that if the surety bond company suffers a loss, they will expect to be reimbursed by the Principal and any indemnitors. You can read more about indemnity here.

Court Bonds are complicated. Our court bond experts can help you decide what you need and help you get them. Contact Access Surety anytime.