Restraining Order is shown on the conceptual photo

Different suggestions can be made regarding the language in the court order that requires a bond when seeking either a Temporary Restraining Order (TRO), a preliminary injunction, an attachment proceeding, or other relief of this sort. Sometimes courts will not grant the relief unless there is a section that requires a bond, so we always suggest that you look at the statute to determine what is and is not required to be there. 

We are not attorneys. We don’t practice law, nor will we comment on it, but some language requiring the bond is more beneficial to your client compared with others. Ultimately, you will have to determine how to proceed. One of the things we see is that when attorneys draft the order to show cause for the motion, they include language that says the relief will be ordered upon the posting of a bond in the amount of X, whether it’s $10,000, $100,000, or $5 million. Using language that says that it’ll be effective upon the posting is one way to do it. 

An alternative way is saying that the ordered injunction, attachment, or TRO is effective immediately and will be dissolved if a bond or an undertaking is not posted in a week, 10 days, or whatever time frame may be determined. The reason you may want to word the matter in such a way is, so you get the relief immediately, and it does not go into effect upon posting the bond. You should only draft the language in this way if you have confirmed with my office what the terms for the bond will be and that your client can agree to said terms.

The reason I point this out is if your client takes a couple of days to obtain or file the bond for whatever reason, the party that’s eventually going to be enjoined, attached, or restrained may take actions to circumvent the order. Having a good relationship with a bonding company and an expert whose brain you can pick, can provide helpful suggestions, and some input regarding the procedure. 

In the past, I’ve talked about pre-qualifying a client for one of these obligations so that you can move immediately to have the bond issued and filed. If you are going to use this alternative language, I strongly suggest that you have the bond lined up ahead of the indemnity agreement being executed so that the second it’s ordered, a bonding agency such as myself can issue the bond without delay.

Give me a call. Let’s discuss any matter you may have and use my decades-long experience to see if I can help and/or advise you.

Neil Pedersen
15 Maiden Lane Suite #800
New York, NY, 10038

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