Fixing Amount of Bond

In actions in rem and in actions in which maritime attachment and garnishment have been used, Fed. R. Civ. P. E(5) provides three methods for the release of property arrested.  A party may secure release by giving a special bond.  Fed. R. Civ. P. E (5)(a) permits the parties to stipulate the amount and nature of security, and authorizes the court to fix the principal sum of the bond if the parties are unable to agree.  The court is to fix bond in an amount sufficient to cover the amount of the plaintiff’s claim fairly stated with accrued interest and costs.  The sum fixed never exceeds the lesser of the value of the property on due appraisal or twice the amount of the plaintiff’s claim.[i]

[i] Folkstone Maritime, Ltd. v. CSX Corp., 1988 U.S. Dist. LEXIS 5018 (N.D. Ill. May 27, 1988)


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