Prejudgment Collection Bonds
It can be tempting for a plaintiff to seek prejudgment remedies against a defendant. This prevents the defendant from hiding their assets before a judgment can be obtained, and can also provide leverage for settlement. Two prejudgment remedies available to the plaintiff are (1) attachment, where the plaintiff puts a judicial lien directly on the defendant’s property, Chapter 6.25, RCW, and (2) prejudgment garnishment against a third-party that owes money to the defendant, such as an employer who pays wages to the defendant employee, Chapter 6.26 RCW.
However, there are serious consequences for the plaintiff if they do not prevail in court. The plaintiff must execute a bond for double the amount of the judgment sought. If the defendant wins, the plaintiff’s prejudgment seizure of the defendant’s assets is automatically deemed to have been wrongful. This means the defendant can recover actual damages sustained as well as reasonable attorney’s fees. RCW 6.25.100; 6.26.030. If a court finds the plaintiff acted maliciously in obtaining prejudgment remedies, the plaintiff may be liable for exemplary damages, including not just direct harm to the defendant’s property, but also indeterminate damages to the defendant’s reputation, pride, feelings, or other damages of a sentimental nature. RCW 6.25.100; RCW 6.26.030. The plaintiff can be liable up to the amount of the bond, twice the amount of the judgment sought. RCW 6.25.080(1); RCW 6.26.020.
The court has the discretion to fix a different amount for the bond the plaintiff is required to file, though there is a minimum bond for attachments ($3,000 in superior court, $500 in district court). However, courts can increase the value of the bond as well as decrease it. See Greive v. Warren, 54 Wn.2d 365, 340 P.2d 815 (1959) (plaintiff pled $100,000 debt plus additional unspecified amount, bond set at $250,000). On the other hand, courts will also lower bonds, sometimes to token amounts. E.g., Offshore-Inland Servs. of Ala., Inc. v. R/V DEEPOCEAN QUEST, 2009 WL 1292831 (W.D. Wa. 2009) (defendant requested $300,000 bond, court ordered $3,000 bond).
For attachments, a plaintiff need not file a bond at all if only real estate is being attached, and the plaintiff seeks attachment because the defendant either (1) is a foreign corporation or non-state resident, or (2) is evading service of process or otherwise cannot be found. RCW 6.25.080(2).)
Nevertheless, a plaintiff should be confident that their claim will prevail before seeking prejudgment remedies against the defendant, or they risk losing more than the judgment they sought in the first place.