Sunday, December 13, 2009

Why was TLC required to post bond? Because they might lose.

Some questions have come up in comments about the $50,000 bond TLC was required to post.

Contrary to many Internet reports, TLC has not "won" their lawsuit, had their contract declared valid, received damages from Jon, or anything of the like. They have simply had a preliminary injunction granted to stop Jon from unauthorized appearances pending the result of the lawsuit.

When you hear bond, most people think jail. But this is not a criminal case, so this is not the same as getting out of jail. It's a "civil bond" or a "surety bond."

Surety bonds can be used for a wide variety of purposes, but in this case it may be required to ensure TLC will be cooperative in the lawsuit, attending all court dates, come prepared, etc. If they don't, the judge can easily pull money from their bond. Thus, a strong incentive to be on their toes. It also assumes that most lawsuits are a drain on a court's resources and time, and thus a drain on the taxpayer. So if TLC loses, they may be required to compensate taxpayers for waste of time, and money can be taken from the bond they've posted. If they win, they get the bond back. One of the main purposes is to protect taxpayers and discourage unnecessary lawsuits. It is also an incentive to settle the case in Mediation, or risk losing the bond if they gamble on a trial and lose.

Jon's lawyers could have requested TLC post bond, or the judge could have just ordered it on his own motion.

Either way, we think it is a strong message from the judge that TLC better be serious about coming to an agreement with Job, or risk losing a lot of money.

0 sediments (sic) from readers:

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