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MGA for Federally Authorized Surety Companies — Puerto Rico Practice

The Puerto Rico plaintiff cost bond. Fianza de no residentes.

A Puerto Rico non-resident cost bond (fianza de no residentes) is required of every plaintiff bringing a civil suit in the courts of the Commonwealth. The penal sum is minimal but failure to file is a fatal defect that operates as adjudication on the merits per Priolo v. El San Juan Towers Hotel, 575 F. Supp. 208 (D.P.R. 1983). We write Puerto Rico non-resident cost bonds same-day from our San Juan office.

Bond Penalty
Statutory minimum
Multiplier Type
Statutory amount
Filing
Tribunal de Primera Instancia
Turnaround
Same-day issuance

What a Puerto Rico cost bond actually does.

Puerto Rico's non-resident plaintiff cost bond — fianza de no residentes — is one of the most procedurally consequential cost bonds in U.S. practice. Unlike most state cost bond statutes that apply on defendant's motion, the Puerto Rico bond is required of every non-resident plaintiff at the time of filing. The bond penalty is modest, but failure to file is a fatal defect.

In Priolo v. El San Juan Towers Hotel, 575 F. Supp. 208 (D.P.R. 1983), the U.S. District Court for the District of Puerto Rico affirmed that "a dismissal for failure to comply with a non-resident bond order operates under Puerto Rico law as an adjudication on the merits, unless the trial court otherwise specifies." The procedural consequences of non-compliance are therefore severe: a plaintiff who fails to post may be barred from refiling on the same cause.

Our Surety One San Juan office handles Puerto Rico non-resident cost bonds as a routine same-day practice. The application is brief, the penal sum is minimal, the procedural impact is significant.

The rules we underwrite to.

Puerto Rico's plaintiff cost bond requirement is codified at P.R. Rule of Civil Procedure 69.5. 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 Puerto Rico court will accept.

Controlling Authorities
P.R.
P.R. Rule of Civil Procedure 69.5 — Non-resident plaintiff bond — fianza de no residentes
Priolo
Priolo v. El San Juan Towers Hotel — 575 F. Supp. 208 (D.P.R. 1983) — dismissal for non-compliance is adjudication on merits

How a Puerto Rico cost bond gets issued.

Puerto Rico non-resident cost bonds are written same-day on a one-page application without collateral. The penal sum is modest; the underwriting is routine; our San Juan office handles the practice in volume.

One document starts the file: the demanda (complaint) or notice of intent to file. The principal's non-resident status is established on the application form. We deliver bonds in PDF for filing with the Tribunal de Primera Instancia (Court of First Instance) of the relevant Puerto Rico judicial region.

For matters proceeding in the U.S. District Court for the District of Puerto Rico (federal court), the Puerto Rico non-resident cost bond rule applies as an Erie matter where the case proceeds on Puerto Rico law. Our underwriters are familiar with both the state and federal practice contexts.

Puerto Rico-specific questions.

Is the Puerto Rico non-resident cost bond required automatically?
Effectively yes for most non-resident plaintiffs. Unlike most U.S. state cost-bond regimes that require a defendant's motion, the Puerto Rico bond is required at filing. Failure to file is a fatal defect.
What is the bond penal sum?
The statutory amount is modest — typically in the hundreds of dollars. The bond functions more as a procedural compliance mechanism than as a serious cost-recovery instrument.
What happens if a non-resident plaintiff fails to file?
Per Priolo v. El San Juan Towers Hotel, 575 F. Supp. 208 (D.P.R. 1983), dismissal for failure to comply with a non-resident bond order operates as an adjudication on the merits, unless the trial court otherwise specifies. This is significantly more punitive than the typical state cost-bond regime.
Does the rule apply in federal court in Puerto Rico?
In Erie diversity cases proceeding on Puerto Rico substantive law, the rule applies. Our underwriters handle both Tribunal de Primera Instancia and U.S. District Court (D.P.R.) filings.
Where is the bond filed?
With the Tribunal de Primera Instancia of the Puerto Rico judicial region where the action is filed. Puerto Rico operates a single Court of First Instance with regional administration.
How long does issuance take?
Same-day from our San Juan office. We handle Puerto Rico non-resident cost bonds as a high-volume routine practice, with Spanish and English language support.

Further reading on the Surety One blog

↗ suretyone.com/blog

Filing in Puerto Rico as a non-resident?

Send the complaint or the defendant's motion for cost bond. Same-day issuance for qualified files.