On occasion, the client of an attorney will need a surety bond, and these bonds are placed by surety brokers. We refer to these as Court, Fiduciary and Probate Bonds, which are required by various courts in our judicial system. These bonds are used to protect either property or money. So let’s take a look at some of the most common bonds required.
An Appeal Bond or Supersedeas Bond is required to stop the enforcement of a judgment, and normally guarantees that a defendant will pay the other party if they lose their appeal, which usually includes interest and legal fees as well.
An Attachment Bond or Replevin Bond is required to seize property so it can’t be sold or transferred before a case is decided. This allows the plaintiff to be sure they will receive what is rightfully theirs.
An Injunction Bond or Temporary Restraining Order (TRO) Bond stops a defendant from taking specific action that could harm a plaintiff. Examples could be picketing a business, passing trade secrets to another company, or violating patents and trade names.
An Administrator Bond or Executor Bond is required by a probate court when a person dies without a will, or if the person managing ones financial affairs lives out of state or is not named in the will. The person who is bonded must follow court requirements, and the expressed instructions of the deceased when distributing estate assets.
A Guardian Bond is required to protect the assets of a minor who receives a sum of money, or to protect the assets of an adult who becomes incompetent. The bond guarantees that the guardian will properly manage and safeguard the funds, and will obtain court authorization for any expenditures.
For all bonds, a surety will look for the bonded principal to have good credit, good character, and a track record of personal stability. Our goal as a surety broker is to effectively assist law firms and their clients whenever a surety bond is required by a court.
An attorney firm needs to work with an experienced surety broker to make sure its clients receive proper guidance and efficient service. If you’d like to learn more about surety bonds for the legal profession, please contact me at Oswald Companies.