In admiralty law practice an admiralty bond is referred to as a "stipulation". Filing of a stipulation is required pursuant to the General Provisions, Rule E. and others. Admiralty stipulations are frequently required by both parties to an suit in personam when there involves process of maritime attachment and garnishment, actions in rem, and petitory, possessory, and partition actions. There are several types.
Pursuant to Federal Maritime Code, the court may, on the filing of a complaint or on the appearance of any defendant, claimant, or any other party, require the plaintiff, defendant, claimant, or other party to give a stipulation, in such sum as the court directs to guarantee all costs and expenses that may be awarded against a party by any interlocutory order or by a final judgment, or on appeal by any appellate court.
Pursuant to 28 U.S. Code §2464, whenever a warrant of arrest or other process in rem is issued in any admiralty case, the U.S. Marshal must stay the execution of said process, or discharge the property arrested if the process has been levied upon receipt from the respondent or claimant of the property an admiralty bond or stipulation in an amount double that claimed by the libellant, issued by a surety approved by the judge of the district court where the case is pending, or in his absence by the collector of the port. Posting of a special bond generally superseads a previously filed general bond. Further, in determining the special admiralty bond amount, the parties may agree to a stipulation amount for the release of a vessel or other property to be not more than the amount claimed in the libel, with interest, plus an allowance for libellant's costs.
This admiralty bond is needed to guarantee compliance with a judgment of the court in all or any actions that may be brought in which a vessel is attached or arrested. Filing of a general bond stops the execution of all process against such vessel so long as the amount of the stipulation is at least double the aggregate amount claimed by plaintiffs in all actions begun and pending for which such vessel has been attached or arrested. Judgments and remedies may be enforced against the general stipulation as if a special bond or stipulation had been filed in each of such actions separately.
This stipulation, pursuant to Rule E., must be filed when a person who has given security for damages in the original action asserts a counterclaim that arises from the transaction or occurrence that is the subject of the original action. The libellant (plaintiff) for whose benefit a previous admiralty bond has been given must give counter security for damages demanded in the counterclaim unless the court for cause shown, directs otherwise. Proceedings on the original claim are automatically stayed until this admiralty bond is filed unless the court directs otherwise.
This admiralty bond, often filed with a stipulation for cost, is a "bespoke" instrument which can be manuscripted much like an injunction bond. This bond is generally required in an amount equal to the value of a petitioner's interest in a vessel plus costs of court and interest at the rate per annum as required by the court.
This stipulation is nothing more than terminology describing the admiralty bonds contemplated under 28 U.S. Code §2464. The key word "discharge" or "release" characterizes this as a libellee (defendant/respondent) bond, and are underwritten accordingly.
A federal supersedeas bond is a post judgment mechanism available to both libellants and libellees that have sustained and adverse verdict. The practical effect of the supersedeas bond is to stay execution of admiralty decrees and orders so that the appellant may have its argument reheard.
Admiralty bonds must be issued by a surety company currently listed on the U.S. Treasury's circular of sureties acceptable for federal obligations ("T-List"). Quoting an admiralty stipulation accomplished by a surety bond underwriter with knowledge of admiralty court obligations which can be complicated. Judicial bond leader, Surety One, Inc. specializes in surety bonds for federal, state and local trial courts and courts of appeals. Application submissions are reviewed and responded to within one hour of receipt. We are the most agile surety underwriter in the United States. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat with an underwriter for further information or to discuss your admiralty bond need.
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