In Davidson County, I file a Cost Bond with every new lawsuit. A “Cost Bond” is given pursuant to Tenn. Code Ann. § 20-12-120 and means that the plaintiff’s lawyer is acting as surety for payment of all court costs in the matter.
These costs generally run from $200 to $500 and, of course, it’s the client’s obligation to pay; nevertheless, the Clerk wants the lawyer to make sure those costs get paid. If, at the end of the case, the court costs aren’t paid, our Clerk gives it about 6 months, then they send the attorney a bill under the Cost Bond.
No big deal, right? (Well, it’s sort of a big deal. I never sign as “David Anthony”–I sign them as my law firm, “Bone McAllester Norton”).
Recently, I was blown away by seeing an attorney sign a different type of bond. This attorney signed a “Surety Bond,” in the mid-five-figures-range, pursuant to Tenn. Code Ann. § 29-18-130(b)(2).
If you don’t know that statute, that’s the detainer appeal bond statute, which requires a defendant who appeals an eviction judgment to post a bond in the amount of one year’s rent (in order to remain in possession of the property). Instead of posting a cash bond, one option is to have two Sureties guaranty payment of any damages and accruing rent.
So, in the event that the defendant loses the appeal, this attorney is personally liable for the damages. This defendant hasn’t been paying her mortgage, and it’s quite possible that she isn’t going to pay an entire year’s rent on the property. But guess who will be liable for the entire debt?
Yep. This attorney. For the entire amount. Watch what you sign.