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MGA for Federally Authorized Surety Companies — Colorado Practice

The Colorado plaintiff cost bond. On defendant's motion.

Colorado Revised Statutes §13-16-101 requires a non-resident plaintiff, on the defendant's motion, to post a cost bond securing the defendant against unpaid court costs if the plaintiff fails to prevail. We write Colorado cost bonds in every Colorado state court and in the U.S. District Court for the District of Colorado.

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Bond Penalty

Set by court on motion

Multiplier Type

Statutory amount

Filing

District Court

Turnaround

Same-day issuance

The Plain-English Version

What a Colorado cost bond actually does.

Colorado is among the few states that retain a codified non-resident cost bond requirement. Under Colo. Rev. Stat. §13-16-101, in state cases at law and in equity, where the plaintiff is not a resident of Colorado, the defendant or any officer of the court may move the court to require the non-resident plaintiff to give a written instrument securing the payment of costs.

Section 13-16-102 sets the procedural mechanism: the motion may be made at any time during the action, the court holds a noticed hearing, and the court sets the bond amount based on its estimate of recoverable costs. If the plaintiff fails to post within the time the court allows, dismissal is the standard sanction.

The principal is the non-resident plaintiff. The obligee is the defendant (and, in some configurations, officers of the court entitled to fees and costs). The bond runs through to judgment and pays the defendant's recoverable costs if the plaintiff loses or fails to prosecute.

Statutory Framework

The rules we underwrite to.

Colorado's plaintiff cost bond requirement is codified at Colo. Rev. Stat. §13-16-101. 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 Colorado court will accept.

Controlling Authorities

Colo.: Colo. Rev. Stat. §13-16-101 — Non-resident plaintiff cost bond — when required
Colo.: Colo. Rev. Stat. §13-16-102 — Procedure for requiring the bond
Colo.: Colo. Rev. Stat. §13-16-104 — Effect of failure to file bond
Colo.: Colo. R. Civ. P. 121, §1-22 — Local practice — costs

Underwriting & Process

How a Colorado cost bond gets issued.

Colorado §13-16-101 cost bonds are written same-day on standard application terms. The bond amount is typically modest (the statute does not impose a fixed multiplier; courts set the amount based on projected taxable costs). Most bonds are uncollateralized.

Two documents start the file: the complaint from the underlying action and the defendant's motion and court order setting the bond amount. We deliver bonds in PDF for filing through Colorado Courts E-Filing.

Questions We Hear Every Week

Colorado-specific questions.

When must a Colorado plaintiff post a cost bond?

On defendant's motion under §13-16-101 and §13-16-102 when the plaintiff is a non-resident of Colorado. The bond is not automatic — the defendant or an officer of the court must move.

How is the bond amount set in Colorado?

By the court at the time it rules on the motion. The statute does not impose a fixed multiplier; the court sets a reasonable amount based on projected costs of suit.

What if the plaintiff fails to post?

Per §13-16-104, the action is subject to dismissal. The court will typically order dismissal without prejudice unless the plaintiff shows cause within the time the court allows.

Does the bond cover attorney's fees?

Generally no — §13-16-101 covers 'costs' in the technical taxable-cost sense, not attorney's fees. Attorney's fees are recoverable in Colorado only where contract or statute permits, and the cost bond does not extend to fees unless the court's order specifies.

Are foreign corporations subject to the cost bond?

Yes. A foreign corporation that has not registered to do business in Colorado is treated as a non-resident plaintiff for §13-16-101 purposes.

How long does issuance take?

Same-day for qualified files. We deliver bonds in PDF for direct filing through Colorado Courts E-Filing.