Secure the precautionary measures your legal strategy requires, or protect your liquidity and assets throughout the legal process, with NRGI Broker’s support for damages and loss bonds.
Bonds
Damages Bond
A Damages Bond is a non-criminal judicial guarantee that protects the opposing party against potential losses caused by an injunctive, provisional, or jurisdictional measure within civil, commercial, administrative, or tax litigation.
Its primary function is to ensure that, should the court-ordered measure be ruled improper or unfounded, the affected party can be fully indemnified.
When is this bond required?
Generally, a judge or judicial authority requires this type of bond in cases such as:
- Precautionary Seizure or attachment of assets.
- Stay of Execution (Suspension) of the challenged act in Amparo proceedings.
- Provisional Measures within commercial, administrative, or tax legal procedures.
Requirements for Issuance
To obtain a Damages Bond, the surety company performs a legal and financial analysis of the applicant. The following is required:
- Court Order: A copy of the judicial ruling or resolution ordering the bond.
- Legal Identification: Incorporation papers (Bylaws), powers of attorney, Tax ID (RFC), and proof of fiscal domicile.
- Financial Records: Financial statements for the previous two years and the current year, along with tax returns.
- Bond Amount: The specific amount established by the authority.
- Collateral: In certain cases, additional guarantees such as co-signers, real estate, or pledged deposits held by the surety until a final judgment is reached.
Frequently Asked Questions
Does this bond protect me as the plaintiff?
Yes, but its primary function is to guarantee that the other party will be compensated if the requested measure is eventually deemed unjustified.
What happens if I do not present the bond within the indicated timeframe?
The requested injunctive relief may not be granted or could be revoked.
Does the bond cover all types of damages?
No. It only covers direct and quantifiable damages and lost profits (perjuicios) resulting from the judicial measure, up to the amount set by the authority.
Why secure your Judicial Bond with NRGI Broker?
At NRGI Broker, we understand that judicial bonds require urgency, precision, and solid legal backing.
We offer you:
- Rapid Response for judicial proceedings.
- Nationwide Coverage for all bond issuances.
- Preferential Terms and expert guidance on renewals or cancellations.
- Direct Relationships with Mexico’s leading surety companies.
- Specialized Technical and Legal Advice.
