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Cost Bonds
Answers, Defenses, Counter & Cross Claims > Reference Manual > Cost Bonds

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Nonresident cost bond.

Under Florida law, an attorney cannot become a surety on any bond of his client in
any judicial proceeding, including bonds on behalf of out-of-state plaintiffs
(nonresidents). Fla. Stat. 454.20; Fla. Rules of Jud. Admin. Rule 2.505(c); Fla. Bar
Comm. On Ethics, Ethics Op. 70-8 (1993) (last revised June 2009); see also Fla. Stat.
57.011.

Florida Statutes section 57.011, dealing with Costs and Non-resident Bonds, states
that a nonresident plaintiff must file a bond of surety in the amount of $100 to be
approved by the clerk. Fla. Stat. 57.011. The purpose of the cost bond is to protect
prevailing defendants against suits brought by nonresident plaintiffs. Certex USA, Inc. v.
Vidal, 2010 WL 1524465 (S.D. Fla. 2010).


Failure to comply with the provisions of this section may result in dismissal or
alternatively, defendant may hold plaintiffs attorney personally liable for nonresident
cost bond of $100. Lady Cyana Divers, Inc. v. Carvalho, 561 So. 2d 612, 61314 (Fla. 3d
DCA 1990).

While there no specific methods or procedures required for recovery of the cost
bond, a party posting a cost bond is entitled to return of the unearned portion of the bond
that was posted with the court. State ex rel. Dart v. Baker, 182 So. 223 (Fla. 1938).

One method utilized is to create a trust for the deposit which will terminate upon the
end of litigation, with the money being disbursed to the proper party. Id.

Florida Statutes section 454.20 is titled Attorneys not to be sureties. It states that
[n]o attorney shall become surety on the official bond of any state, county, or municipal
officer of this state, nor surety on any bond of a client in judicial proceedings.

The Third District Court of Appeal of Florida has applied this statute and held that
an attorney, who signs an instrument for a client as a surety on a bond, violates this
section. Crownover v. Schonfeld, 214 So. 2d 499, 500 (Fla. 3d DCA 1968).

The view prohibiting attorneys from being sureties is reiterated in Florida Rules of
Judicial Administration Rule 2.505(c) which states that no attorney . . . shall enter
themselves [as] . . . surety in any proceeding in court.


Lastly, in relation to charging a party for the cost of the bond, Rule 4-1.5 of the
Florida Rules of Professional Conduct allows for an attorney to charge a reasonable
amount for costs and fees incurred taking into account several factors.

Costs represent charges that are imposed for essential services rendered by the
courts and other officers in relation to the litigation. City of Miami v. Murphy, 137 So. 2d
825 (Fla. 1962). On that note, the cost bond is a payment to be made by the plaintiff and
is recoverable upon a successful outcome in the litigation. Therefore, it does not appear
that this would be a chargeable cost if the plaintiff is the party paying it in the first place.