The California Code of Civil Procedure (CCP-527) covers both preliminary injunctions and temporary restraining orders. A party seeking a preliminary injunction or temporary restraining order may be required to post a bond, which is even more likely with a preliminary injunction. And when you need one of these bonds, you need it quickly.
The purpose of this overview is to focus on what you should do if you’re going to be motioning the court for an injunction. First and foremost, you should have your client approved for a bond up to a certain amount before you go into court. Your client may be very sound financially or have substantial assets, but it may take time for them to sign the indemnity agreement, which is what the surety requires to execute a bond. The Indemnity agreement is a guarantee that the applicant will pay the surety any costs associated with the bond, which could take them time because they have internal processes to review these agreements, or they might require an NDA (Non-Disclosure Agreement) to provide financials.
I recently had a case where it took a client weeks to provide financial statements because internal processes prevented them from providing the statements promptly. Had this been known at the time the client sought the injunction, the delay would have only been minimal instead of several weeks since we would have started the bonding process before the judge ruled on the motion.
So, my suggestion is when you’re applying for a replevin, temporary restraining order, attachment, or an injunction, have your client pre-approved for a bond up to a certain amount. If they’re privately held, we would need to copy their most recent audited financial statement, or if they don’t have an audited internal financial, we would need internal financials, which would include both a balance sheet along with a profit and loss statement. In addition to the financial information, the surety would require some details on the case. In the event the client is publicly traded or has financial information online, we can usually access it without having to contact the client.
The best place to start is by giving me a call or email. My name’s Neil Pedersen, Pedersen & Sons Surety Bond Agency. Feel free to give me a call, and let’s discuss your bonding matter.
Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY, 10038
212-227-7277
neil@courtbondnow.com
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