California Code of Civil Procedure §1030 authorizes a defendant in a California civil action to move the court for an order requiring a non-resident plaintiff to file a cost bond. The bond secures the costs and attorney's fees the court may award the defendant if the plaintiff loses or fails to prosecute. We write California plaintiff cost bonds on a same-day basis with direct e-filing for direct delivery to the issuing Superior Court.
California is one of a handful of states that allow a defendant to demand security for costs from a non-resident plaintiff. Under Code of Civil Procedure §1030, when a civil action has been commenced and the plaintiff is a non-resident, the defendant may at any time apply to the court by noticed motion for an order requiring the plaintiff to file a cost bond.
The bond is not automatic. The defendant must move; the court must find that the plaintiff is in fact a non-resident; the court sets the bond amount based on a reasonable estimate of costs and attorney's fees that may be recovered. Once ordered, the plaintiff must post the bond within the time set by the court, typically 30 days. Failure to post is grounds for dismissal of the action.
The principal is the plaintiff. The obligee is the defendant. The bond pays the court costs and (where statute permits) attorney's fees the defendant recovers if the plaintiff loses or fails to prosecute. We have written California cost bonds for plaintiffs in actions from $50,000 to nine figures, including complex commercial litigation where the projected cost taxables and §128.5 sanctions exposure run into six figures.
California's plaintiff cost bond requirement is codified at Cal. Code Civ. Proc. §1030. The bond is required on defendant's motion (in most cases) and the bond penalty is set by statute or court discretion. We underwrite to the controlling statute and draft each bond on the form the California court will accept.
California §1030 cost bonds are among the most underwriter-friendly court bonds in our practice. The bond amount is bounded by the court's estimate of costs and attorney's fees — typically in the four to six-figure range — and the risk of payout is moderate (the bond only pays if the plaintiff loses and is taxed with costs).
Most California cost bonds are written same-day on standard application terms without collateral. Two documents start the file: the complaint from the underlying action and the defendant's motion and order setting the bond amount. A brief financial statement is required only for larger bonds (over $25,000).
Filing is with the Superior Court that entered the order. We deliver bonds in PDF for direct e-filing through the court's electronic filing system. For complex commercial cases where the court is considering setting a particularly high bond, our underwriters can review the §1030 motion in advance and provide a quote conditional on the court's order.
Send the complaint or the defendant's motion for cost bond. Same-day issuance for qualified files.