In most jurisdictions, temporary restraining orders (TRO) are generally discretionary. When you’re seeking an order to temporarily restrain a party from doing something, a bond can be required. A lot of times it’s up to the judge to order or not order the bond, whereas, in statutes for other types of relief such as a preliminary injunction, the bond is mandatory.
Even though temporary restraining orders and their bonds are discretionary, it doesn’t mean that they are not ordered. My office issues a lot of these bonds every year. So, if you’re seeking a TRO, you should be ready to post a bond if one is required. Generally, the hearings for the preliminary injunction or the attachment, whatever relief the TRO is going to eventually be pursuant to, are held within a short period. So, if you have to post a TRO bond, you should be ready to post that immediately, which is why I always suggest having the bond pre-approved. Most surety companies will require the following to issue a bond:
1. The payment of the bond premium (the annual charge for the bond).
2. The execution of an indemnification agreement (contract for the bond).
To obtain the bond quickly, you could have the executed indemnity agreement in hand and the payment instructions for the premium set up in your client’s accounts payable department before filing the motion.
For my office to underwrite the bond, I would need a copy of the motion papers and the supporting affidavits, along with some brief financial information about your client. Having this all lined up ahead of time means that once the bond is ordered by the court, you could have the bond issued immediately and filed shortly thereafter. Again, because the TRO is pursuant to an injunction, an attachment, or some other relief, you may have a hearing within a couple of days on whether or not the court will grant the further relief you are seeking. Generally, if a bond’s going to be ordered for the TRO there will also be a bond for the injunction and/or attachment. Most judges are going to require that the bond is on file quickly because the hearing for the second part is going to happen soon. It is important to comply with the court’s order so the TRO does not dissolve.
If you would like a 15-minute consultation, give me a call today.
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY, 10038
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