The Replevin Bond, also referred to as the Claim and Delivery Bond or the Sequestration Bond, is a court mandated bond following a legal suit wherein the plaintiff is looking to take back (replevy) property that is in a defendant’s possession. The Replevin Bond with Jet Insurance Company provides a guarantee to the probate court the property will return to the defendant should they be the rightful owner and the plaintiff cannot (or will not) return the possession. Without that surety bond guarantee from Jet, the court will not allow a person to take control of their property prior to a court ruling, which can take a considerable amount of time.
Jet’s Court Bond cuts out unnecessary third parties, leaving an efficient bonding process for the recovery of unlawfully held property.
There is a counterpart to the Replevin Bond, called the Counter Replevin Bond, which allows the defendant to retain possession of the property until the court has reached a verdict. Should this be allowed, the defendant will keep the property, but the plaintiff now has a guarantee should they win the suit to take possession or receive full compensation.
Due to the risk of the bond, Jet will most often require collateral in the amount of the bond limit plus 1% bond premium. The court determines the bond limit based on the value of the property in question. Collateral can be provided in the form of an Irrevocable Letter of Credit or cashier’s check.
Sometimes the bond can be written without collateral after a thorough underwriting process. The premium due to Jet in these cases can range from 1-3%.
Replevin Bonds are filed with the civil court where the property is located. Each court has their own bond filing procedures and Jet will send the original signed and sealed surety bond to the court for you without fees. Another option is having the bond sent directly to you or your attorney, which can be selected in the application. Either way, you will receive an electronic copy of the bond for your records.
Replevin Bonds are active for the duration of the civil court trial. The plaintiff cannot request cancellation with Jet. The court must release the plaintiff of the bond requirement, therefore releasing Jet of their liability on the bond.
Cases in which a Replevin Bond has been utilized can end in a few different ways. Here are the most common scenarios:
Plaintiff Wins, Had Possession
Upon winning the suit over the possession, the plaintiff is granted rightful ownership by the court and may retain possession. Jet would return all collateral collected.
Plaintiff Wins, Did Not Have Possession
If a Counter Replevin Bond was filed and the defendant took back possession, the defendant must return the property to the plaintiff. Any delay in returning the property, or in cases where the property has been damaged while in the defendant’s possession, entitles the plaintiff to file a claim on the Counter Replevin Bond.
Defendant Wins, Had Possession
If a Counter Replevin Bond was filed, the defendant would keep the property that they originally had possession of.
Defendant Wins, Did Not Have Possession
The defendant will be granted ownership of the property and would need to be in receipt of the possession. Should the plaintiff not return the possession, or return it in a damaged state, a claim would be placed on the Replevin Bond to recover the lost amount.
Any claim on a bond held by Jet would be paid out cover damage or loss to the property and any court fees. The collateral held would be utilized and paid out to the damaged party, in this case the defendant. Jet would return any unused collateral to the plaintiff.
The Replevin Bond allows the person or company to regain possession of property from another. The bond guarantees if the defendant wins the trial, they will have recourse for the delay, damage, or loss of the property. The civil court grants authorization for this bond after the plaintiff provides some proof of ownership.
Here is an example scenario of the replevin process:
Jamie and Alex start a delivery company. Jamie provides the delivery truck and Alex provides the warehouse. After 10 years in business, the company closes its doors. The delivery truck is still located at Alex’s warehouse but Jamie wishes to repossess the truck. Alex believes the truck is now theirs and refuses to let Jamie take it. Jamie (the plaintiff) files a Replevin Bond with the court to access what Jamie considers to be their property until a final judgment is made concerning the truck's ownership.
Applying for a Replevin Bond with Jet is simple. Just supply some basic information such as your name and the bond limit and one of Jet’s underwriters will contact you directly to finish the bonding process. Court documentation will be required to verify the bonding limit Jet will need to provide. Since collateral is most likely required, Jet will need the plaintiff to provide a letter of credit or cashier check for the bonding limit.
Replevin Bonds are typically purchased in 1-year terms. If the case is not settled after one year (which is rare) and the bond is still needed, Jet will provide a renewal invoice to renew the bond premium. Once payment is received the bond will continue for another year.
A Replevin Bond with Jet! To summarize you can either wait out the court process for your lawsuit or request with the court a Replevin Bond to access your property now.