To understand what injunction bonds are and how they work, you must first know what an injunction is. Very simply, an injunction is a court order requiring someone to do something specific or not to do it. An injunction may be ordered when a lawsuit is being litigated, usually because the plaintiff wants the defendant to cease and desist a certain activity until the case has been settled or ruled upon.
Here’s an example. You’ve probably seen environmentalists protesting a pipeline project or cutting down trees to clear land for development. The environmental group could file suit against the developer and, as the plaintiff in the case, ask the judge to issue an injunction forcing the developer, the defendant, to stop their work until the court rules on the matter.
If the judge decides to grant the injunction, the plaintiff will be ordered to obtain an injunction surety bond, a type of court bond. In the event that the plaintiff loses the case, the injunction will be canceled, or “lifted.” The injunction bond is the plaintiff’s pledge to pay any damages the defendant suffered as a result of the injunction, such as wages paid to laborers while the injunction prevented them from working. The plaintiff may also be required to pay the defendant’s court costs and legal fees.
Who Needs Them?
You may be ordered by the court to purchase an injunction bond if you file suit against another party and request an injunction pending the court’s decision. The court will let you know whether you need to purchase an injunction bond and in what amount. The bond must remain in force until the court has issued a ruling on the case.