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What Is an Injunction Bond?

When an injunction is violated, the defendant can be charged with contempt and face a number of legal consequences.
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  • Written By: Daphne Mallory
  • Edited By: Melissa Wiley
  • Last Modified Date: 30 July 2014
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Courts may require a plaintiff to secure an injunction bond in the event of a wrongful or false injunction and suffering damages as a result. Plaintiffs can apply for an injunction with the court, which asks a judge to prohibit the defendant from engaging in a specific act, or orders the defendant to do something. The defendant is enjoined by a court order when the injunction is granted, but financial loss and litigation costs are some of the damages that may result if the injunction is improper. The bond guarantees that the plaintiff will pay the defendant for such losses. Injunction bonds can be purchased from surety bond companies as well as some insurance companies that sell court bonds.

Injunction are equitable remedies provided by the court where there are no regional remedies available in the law. The rationale of the court granting an injunction is often to prevent harm to the plaintiff, the plaintiff’s family members, or the plaintiff’s business interest. For example, a plaintiff may request an injunction against a defendant to stop using a trademark that infringes on the plaintiff’s owned trademark. The harm is often a projected future harm, but injunctions are also employed in cases where awarding a monetary damage is not satisfactory or appropriate for the situation. If a defendant violates an injunction, he is held in contempt of the court and can face various legal penalties.

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There are several types of injunctions that an injunction bond covers, including a preliminary injunction, affirmative injunction, and prohibitive injunction. A preliminary injunction prevents the defendant from an act that would hinder the plaintiff’s rights at trial. An affirmative injunction or mandatory injunction is a court order that directs the defendant to perform an act. An interlocutory injunction is a court order that requires the parties to continue to behave as usual and not to make changes until a there’s a court ruling. A prohibitive injunction stops the defendant from performing an act or acts until there is a hearing on the matter.

Each jurisdiction and court system has its own requirements for the amount of the injunction bond required. The judge who presides over the case will often set the amount of the injunction bond and order the plaintiff to obtain one if required. Plaintiffs can fill out and submit an online application to secure a bond or work with an agent or broker to complete the necessary paperwork. The application may request information about assets and a personal identification number, such as a social security number.

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Markerrag
Post 1

This is one of those things that, hopefully, cuts down on people using the courts for petty vendettas by filing frivolous actions against people. It is painfully easy to get a temporary injunction and not all that difficult to make it permanent.

The threat of a sizable bond can help deter people from filing nonsense junctions out of spite or for other reasons. Frivolous actions simply waste a court's time and run up considerable legal fees for defendants. Those resources should only come into play in serious actions.

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