Legal Question in Intellectual Property in California
Waiving bond requirement in California
Our company is a Swedish company. We are working with a California company and asking them to sign a confidentiality agreement that is governed by CA law. We want to include a clause that limits the CA company's ability to require us to post a bond in the case that we file a suit. Under California law can we limit the defendant's ability to require us to post a bond? If we cannot limit the defendant's ability to require us to post a bond, what is the maximum bond that they can require us to post?
3 Answers from Attorneys
Re: Waiving bond requirement in California
California does have a section of the Code of Civil Procedure which allows a California defendant to demand that an out-of-state plaintiff file an "undertaking." The amount of the undertaking may be set by the Court. I am not aware of any case law that says whether the undertaking requirement may be waived by mutual agreement, but it is a very interesting suggestion.
If you would like for me to further research the question, call me at (650) 842-8481 or send email to [email protected].
Re: Waiving bond requirement in California
If the California company seeks a temporary restraining order or preliminary injunction against your company, a bond is required. The bond amount is, to some extent, within the discretion of the judge. You can stipulate (i.e. agree) to a lower bond amount in this instance.
We represent European companies in transactions with California companies. Contact me if you would like any further assistance.
Re: Waiving bond requirement in California
I am not familiar with any such bond requirements prior to filing a lawsuit. You should consult with a California attorney prior to signing any agreements with them to determine whether they are attempting to make suing them unreasonably costly.
California is notoriously easy to sue in.
J. Caleb Donner
DONNER & DONNER
LEGAL WARRIORS �
325 E. Hillcrest Drive, Suite 242
Thousand Oaks, CA 91360
Tel: 805-494-6557
Fax: 805-494-0990
email: [email protected]
website: www.legalwarriors.com
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