Commercial property can be a good investment, but it is not without its problems. One of the biggest challenges facing commercial property owners who are landlords is the inevitable eviction of a tenant.
There can be several reasons for the eviction ranging from changes in the market to people not paying for months on end. When a landlord has to evict the renters of commercial property they make sure to use a distress bond to prove that the eviction is being done with just cause and protection.
Distress Bond Protection
Employing a surety bond such as a distress or distraint bond is an error proof way to handle the eviction process of a commercial tenant. The distress bond in California covers the landlord financially to show the courts that the move was not done without first protecting the tenant against a wrongful eviction. The bond will cover the landlord should the court rule in the tenant’s favor.
Being a landlord is tough no matter which region of California the property is located in. Whether having to deal with the constant demand in Silicon Valley to having to adapt to new property laws in San Francisco it is always best to cover all the bases. Using a distress bond not only protects the tenant but also the landlord from further financial hardship.
It seems almost every eviction makes the news because of the economic trend that has more business going out instead of opening. Landlords who use a distress bond are creating an easier road to travel.
A Bond Process Made Quick And Easy
Jurisco can help any landlord with a distress bond without delays to help make the eviction process as seamless as possible. Any landlord who is dealing with a delicate situation knows that setting the dominios up neatly will help everything fall into place. Contact Jurisco today about why it may be necessary to have a distress bond in California when dealing with commercial property.
Have you heard the latest in the Rite Aid case going on in California? Rite Aid is in need of an appeal bond as a Los Angeles County Superior Court denied the company’s post-trial motions to strike down the $8.7 million jury verdict awarded to a former employee.
While Rite Aid attempts to circle the wagons the court is granting them time to post an appeal bond as they seek to appeal the ruling to a higher court.
The appeal bond helps stay the judgement so the pharmaceutical company does not have to pay out millions of dollars until after their appeal has been heard and ruled on.
When An Employee Sues
Trouble for Rite Aid started back in 2007 when a store manager was injured during an in-store robbery. Severe neck injuries restricted the manager’s movements and abilities.
The employee said Rite Aid higher ups did not handle his injury well, or with respect, and even made disparaging remarks leading to him losing his position.
Back in July a jury found that the employee suffered not only a lost in wages, but $5 million in punitive damages, as well.
Rite Aid has tried to shirk responsibility claiming that the store the manager worked at was actually acquired by Rite Aid but not ran by the company. The Judge did not buy the argument saying since the Rite Aid logo appeared at the store, the manager’s work computer, and other work effects that the business is responsible.
Having an employee sue a company can cause serious issues for a business as this case shows.
Staying A Judgement During Appeal
Since the request to slay the ruling was thrown out the only option left for Rite Aid is to post an appeal bond. Without this surety bond the company would be in contempt of court for not paying the judgement immediately.
Courts in California accept an appeal bond to stay a ruling because it financially protects the plaintiff in the case.
A surety bond covers the judgement amount so the court is shown that the ruling will be followed through despite the defendant’s wish to make an appeal to another court.
Money Judgements Can Be A Blow To The Bottom Line
Rite Aid is not the first business to find out how expensive court action can be. When an employee, customer, or other service provider takes a business to court it can be very costly to their bottom line.
Of course, one of the best ways to protect against court cost is to run a business that cares for employees and customers alike. However, not everything can be planned for. And certainly the actions of a few employees against another employee doesn’t represent total internal chaos – but it certainly doesn’t help a legal case.
Taking Court Action
When a California judge makes a ruling they expect it to be followed without delay. If a defendant feels they have an angle to appeal or relative new information then they may seek a judgement from a higher court.
In order to appeal without being in contempt of the judge’s ruling a defendant must post a surety bond called an appeal bond.
The appeal bond generally covers the amount of the money judgement along with any court fees or interest.
Anyone working a case in California should be aware of the appeal bond guidelines. A member of the Jurisco team can help set up an appeal bond quickly so the process will not be delayed.
Rite Aid is posting their appeal bond. Now only time will tell if there appeal will be sound enough to work.
Jumping into the real estate workforce continues to be an appealing idea for people at various spots of their careers. Not only is becoming a mortgage broker out of college a good move it is also attractive when switching careers, as well. People who generally enter this line of work have a knack for working with people and numbers. They also tend to have a good head on their shoulders – something the state of California wants to make sure they use fully which is why they require a mortgage broker bond.
Why Is A Mortgage Broker Bond Required?
The state of California requires that mortgage brokers take out a surety bond to cover their practice should any situations arise such as mishandling a person’s bank loan transaction. This surety bond is to show the state that the mortgage broker will work in good faith and uphold all state statutes as they pertain to real estate.
Having this surety bond in place is a time saver for the courts in the event a money judgement needs to be handled right away. This bond protects the consumer against any faulty practice that may result in a financial loss. A mortgage broker bond is necessary for any person serving as a mortgage broker for a potential buyer.
How Much Does A Surety Bond Cost?
The cost of a surety bond is going to depend on state and local regulations. In the state of California a mortgage broker bond typically covers around $50,000. This may vary based on local ordinances and/or size of the mortgage broker firm.
People interested in obtaining their mortgage broker license must think ahead to obtaining a mortgage broker bond. Without this surety protection they will not be operating by state code and therefore could be subject to fine and punishment.
Need A Bond In A Hurry?
One of the great things about Jurisco is that we can help our clients quickly. With a fast turnaround time, Jurisco’s lawyer trained staff can set up a mortgage broker bond in the state of California without the hassle. Contact our office today to get started.
Cases concerning property are likely to concern bonds as well. One plaintiff bond that is often required is a replevin bond which is called into play when the defendant is being asked to relinquish control of property (i.e. vehicle, art, a house). A judge requires this sequestration to cover any damages the defendant may incur should the seized property be deemed invalid. California cases are dealing with replevin bonds more and more as the economy continues to try and regain stability in a land of foreclosures and evictions.
When determining the necessity and cost of a replevin bond in California the courts will set an amount based on the value of the property, plus any additional court cost. For instance, a bond covering a brand new luxury vehicle won’t be as high as, say, taking over possession of a home. Bottomline, the court simply wants a safeguard in place so the defendant is not left high and dry. There are situations where property has been turned over to the plaintiff only to have it deemed later that the property was the defendant’s all along.
A plaintiff has the right to seek back property, however, which is why the replevin surety bond is important. It shows the court that the plaintiff would not be taking such measures if he or she did not fully believe that the possession of ownership should go to them. In situations of car repossessions, for example, it is usually in the best interest of the plaintiff to retrieve the car before the court proceedings begin. This prevents further loss of property and money for the one bringing the suit.
The court will fully weigh the risk of the plaintiff and defendant when granting the bond and recovering property action. Be sure to find out the estimated value of the property to allow the bond process to happen seamlessly and quickly. Letting a replevin bond work in your case’s favor will save a lot of legal headaches.
It’s in the news and minds of people who are realizing just how many Senior Citizens are going hungry and losing their homes in this country. As presidential hopeful Senator Bernie Sanders described it, the fact that senior citizens are going without daily meals or medicines should be a concern to everyone as it is a reflection of society. How should your parents or grandparents be treated as they reach that golden age? A guardianship bond can help make sure that people are taken care of respectfully.
When people reach a point where they need a little extra help taking care of their schedule, meals, and home it may be time to seek out a guardianship bond. This type of surety bond allows people some piece of mind knowing that the person granted guardianship will uphold their duties or face the wrath of the law.
It is important to realize that guardianship bonds may be needed in other cases other than an aging senior citizen. There are circumstances when minors or young adults also require having a guardian appointed by the court. Whomever is appointed must abide by any legal instructions and not cause harm, physical or financial, to the person requiring guardianship.
Jurisco can make the guardianship bond a relatively easy process. With just a few questions, the team at Jurisco will determine how much a guardianship bond will cover, how long it needs to last, and figure out which forms need to be given to the higher courts.
Protect those that are near to you by making the court require a guardianship bond. This way a person’s legal estate will be fully protected in case of any mishandling by the guardian. Don’t leave the vulnerable at risk. Contact us today to setup the protection a guardianship bond provides.
Perhaps one of the best ways to explain surety bonds is thinking of it as a sort of insurance policy. Should anything go awry in a legal case or proceeding, a surety bond is the net that catches the downfall, insuring plaintiffs and defendants do not lose money, property, and the like without any recourse. When clients come to Jurisco they can be looking for a wide range of surety bonds to protect themselves and their clients.
In the general populace, people often think of bail bonds or construction bonds when they think of surety bonds, but that isn’t completely correct. When it comes to the judicial realm, lawyers, defendants, and plaintiffs use surety bonds to protect themselves during court proceedings and in the event that the outcome doesn’t come out in their favor.
A Few Types Of Surety Bonds
There are different types of surety bonds that a plaintiff or defendant may require. A defendant, for instance, will require an appeal bond in order to stay a judgement while the appeal process takes course. On the other hand, a plaintiff would need a replevin bond to show the court good faith that they have the right to place a lien on property before the court makes its final judgment.
In short, all surety bonds show the court that whatever action that is requested or already being taken will be reversed in due order should the court rule against the move. This protects both parties involved and guarantees there will be no financial loss on other side.
When To Apply For A Surety Bond
Some surety bonds are required before an action can be taken while others become necessary during the trial or after a judgment has been reached. Talking to one of our surety bond experts is the first step in understanding what may or may not be necessary in any given circumstance.
It is best to be prepared for whatever comes up. For example, if the defendant doesn’t even have an appeal on his or her radar they could come into trouble at the end of the case. They could be forced to pay up or give up property without little recourse and hope that if they win the chance at an appeal they will be able to reclaim their property back in the same condition.
Rule of the surety game: be prepared. Have the bond that your client needs for their case in all scenarios. The surety bond will protect the firm, the client, and the process, allowing things to operate smoothly without any unnecessary hindrance. If you have any questions, please don’t hesitate to contact the surety bond experts at Jurisco
Section 8242 of the California Civil Code deals with the surety bond requirements and procedure for releasing of real property from a claim of lien. The bond in this case is referred to as a Release of Lien bond or, simply, a Mechanic’s lien bond. Generally, liens are filed against real property by a contractor or subcontractor. However, as an article in the California Construction Attorney’s website shows, liens can also be filed by design parties as well. This extends to architects, engineers and site planners. However, as the above referenced article explains, traditional lien rights to designers only kick in once the construction project begins. Prior to that and during the planning phase, a design professional can use a Design Professional Lien to seek remedy.
Mechanics’ liens and design professional liens are technical and can be difficult to prove or refute. It is always wise to see the consul of an experienced attorney before filing a claim. If you would like to find out more information on Mechanic’s Lien Bonds or Transfer of Lien bonds, however, please contact the Surety Bond Experts at Jurisco. One of their helpful staff will happy to prove assistance with rates, applications and general information.
In 2014 Starbucks filed suit in California seeking to have a preliminary Injunction levied against Howard Heller, the owner of both Specialty Coffees International and Cafe Nu International, for (among other claims) trademark infringement. (Details of the case can be found: here) The defendant failed to answer the complaint and the judge granted the preliminary injunction to the plaintiff in November of 2014. In a world gone fully digitized, ‘intellectual property’ is growing harder to define and it is becoming more difficult to recognize (and then prove) if your intellectual property is being infringed on or stolen. The law offers a few ways to protect a company’s brands and intellectual property. Certainly one of the most potent tools is the use of preliminary injunctive relief (yes, that is an actual term: proof), where a plaintiff can stop the misappropriation of physical or digital goods from being sold in the market place. In most cases, courts in California will insist that an Injunction Bond be procured before any per-judgement relief is levied.
An injunction bond protects the defendant from being wrongfully enjoined, and covers any damages the defendant may sustain should the court rule the plaintiff’s suit is wrongful. In the example used above, Starbucks was granted the preliminary injunction based on the merits of the claim. However, if the court eventually sides with the defendant, then Starbucks would be liable to pay for the harm the defendants suffered because their goods were prevented from being sold. Generally, judges in California do not issue injunctions unless the claim seems airtight and likely to be upheld. Or, in the language of the court, “Starbucks has demonstrated that it will likely suffer irreparable harm if an injunction is not issued”. For all pre-judgement actions, the burden of proof is with the plaintiff and they must prove that they will suffer harm, rather than inflict it on the defendant through enjoinment.
Jurisco is the leader in injunction and all plaintiff court bonds. There are many agents and agencies in the marketplace who do not understand the product they are selling and rely on the insurance companies to underwrite their bonds. At Jurisco, they know the risks and how to effectively underwrite all court bonds
without the necessity of going back and forth with corporate “no” men underwriters. Most companies require collateral for ALL injunction bonds. While there are a few injunction cases that may need collateral, Jurisco strives to approve every bond without this requirement so the filing can move forward quickly and without
delay. For application, rates and more information on Injunction Bonds, contact the surety bond experts at Jurisco, and one of their knowledgeable staff will answer all your queries.
It is always sad news when there is strife among beneficiaries after a loved one has passed. It is especially difficult when the strife plays out in public. After the tragic death of famed Actor/Comedian Robin Williams, his heirs are engaging in just such a public battle; as an article in the New York Times explains: Robin Williams. Even though there was an estate plan in place there is still significant discord among the heirs. And, despite the plan, it may still be necessary for the courts to intercede and require a Personal Representative (PR) to administer estate distribution to avoid any further trouble. Due to the nature of the dispute, the court may require the PR to secure a Personal Representative Bond to ward off any claims of mismanagement.
A personal representative bond is required by the state of California to protect the interest of the deceased’s estate, its heirs and those parties who are owed money. The responsibility of a personal representative (commonly referred to as an administrator or executor in California) is taken seriously by the courts. Courts mandate the surety bond as a form of protection for all parties. While the surety bond protects the heirs and creditors of the estate, it is also a protection for the personal representative to ensure she/he fulfills their duties responsibly.
Being Appointed As A Personal Representative
On average, the deceased will name the personal representative in their will. However, if this does not occur the responsibility could be entrusted to the closest living relative or even to a financial institution (like a bank) that will oversee the account. A California judge may appoint a person to the position after a probate examiner reviews the petition and estate information.
Being named as a personal representative of an estate is a big deal. The court holds the overseer to all his or her actions in order to protect heirs and creditors of the estate.
The duties of a personal representative, executor or administrator in California include the following:
- Notifying Inheritors
- File Will in Probate Court
- Pay Taxes
- Distribute Property
- Open Bank Accounts for Estate
- Settle Debts
All of these tasks and more, including the day-to-day details, rest on the shoulders of an executor. Given the amount of responsibility an administrator holds it is necessary for the personal representative bond to fully cover these actions.
Executor Bond Cost
California executor bond statute explains how a personal representative bond amount is determined:
8482. (a) The court in its discretion may fix the amount of the bond, but the amount of the bond shall be not more than the sum of:
(1) The estimated value of the personal property.
(2) The probable annual gross income of the estate.
(3) If independent administration is granted as to real property, the estimated value of the decedent’s interest in the real property.
(b) Notwithstanding subdivision (a), if the bond is given by an admitted surety insurer, the court may establish a fixed minimum amount for the bond, based on the minimum premium required by the admitted surety insurer.
(c) If the bond is given by personal sureties, the amount of the bond shall be twice the amount fixed by the court under subdivision (a).
(d) Before confirming a sale of real property the court shall require such additional bond as may be proper, not exceeding the maximum requirements of this section, treating the expected proceeds of the sale as personal property.
The executor bond lasts as long as it takes to formally settle an estate. Sometimes this can be achieved in as little as eight months while other estates take years to settle. The longevity of the personal representative bond will impact the cost of the surety. Make sure to discuss this point with your Jurisco representative when you contact them about personal representative bonds
Everyone knows about self driving cars; or autonomous vehicles in the parlance of state regulatory bodies. Since 2012, Google and other technology/car companies have been legally operating and testing these cars in California. Understandably, state officials have seemed uncertain how regulate this new technology; despite self driving car’s sterling accident record. There is, however, a bill going through the California Assembly which addresses an aspect of this story that directly relates to the Jurisco surety blog; and that is insurance requirements. Manufacturers of autonomous vehicles are required to carry proof of insurance; and this could be in the form of an auto insurance bond for the amount of $5,000,000. The bill in question (AB 1164) would amend Section 38750 of the Vehicle Code, that relates to autonomous vehicles.
In fact, all drivers in California could choose to post a surety bond in lieu of carrying insurance. In California it falls under the umbrella of Financial Responsibility. This means that all drivers are required to have proof that they can cover damages up to $35,000. Under California Vehicle Code, Section 38750 drivers can choose between three options to meet this requirement: Carry traditional insurance, post cash with the state or to procure a auto insurance bond with a licensed bond agency.
If you are interested in learning more about insurance requirements in California or would like to apply for an auto insurance bond, please contact the surety bond experts at Jurisco and one of their expert staff will respond to your query.