Understanding Replevin Bonds: Everything You Need to Know

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What Are Replevin Bonds?

Replevin bonds are plaintiff bonds used in replevin law suits. In a replevin lawsuit, the plaintiff is seeking the return of personal property that the suit claims as wrongfully taken or detained. The process of replevin temporarily returns the contested property to the plaintiff pending a final court determination.

A replevin bond guarantees that if the plaintiff loses the case, the defendant can seek restitution for any damages suffered due to the temporary return of the property to the plaintiff.

Who Needs Them?

Plaintiffs who have filed a replevin lawsuit may be required to obtain a replevin surety bond as a condition of returning the property to the plaintiff until the judge has decided the case. The plaintiff may be an individual or a business entity.

How Do They Work?

As with all surety bonds, three parties are involved in this kind of bond. The plaintiff filing the replevin lawsuit is the principal. The court requires the bond to benefit the defendant as the obligee. The company underwriting and issuing the bond is the surety. Here is the sequence of events:

• File Lawsuit.�The plaintiff files a replevin lawsuit and the judge orders the plaintiff to provide a replevin bond of a certain amount.
• Property Returned.�Once the bond is posted, the judge orders the disputed property to be returned to the plaintiff pending a decision on the case, and the plaintiff regains possession of the disputed property.
• Ruling.�The judge eventually rules in favor of the plaintiff or defendant. If the decision is in favor of the plaintiff, the replevin bond is canceled. If the decision is in favor of the defendant, the disputed property is ordered to be returned to the defendant.
• File Claim.�If the defendant suffered any damages as a result of the property having been temporarily returned to the plaintiff, the defendant may file a claim against the replevin bond.
• Claim Approval, Payment & Reimbursement.�The surety investigates the claim. If it is found to be valid, the surety company makes payment to the defendant. The surety then seeks reimbursement of the claim amount from the plaintiff.

How Much Do They Cost?

The court will determine the required amount of the bond based on the value of the disputed property. The bond amount may be as much as one and a half times the value of the property. The premium cost is determined by multiplying the total bond amount by the premium rate established by the surety company. The rate determination considers the plaintiff�s credit history and financial condition. It is generally in the range of 1%-2% for those with good credit.

The plaintiff typically must meet several other requirements to obtain a replevin bond, including:

• The court document stating the bond requirements
• Court documents providing information about the case that will enable the surety to assess the likelihood that the plaintiff will win the replevin lawsuit
• Financial statements and bank statements from the plaintiff
• Collateral valued at 100% (or more) of the bond amount

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Fill out our convenient online application today if you�ve been ordered to post a replevin bond. Our experts will gladly help you, with turnaround times of 24 hours or less.

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