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§ 995.250.Costs Include Premium On Bond Paid By Party

Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 2. General Provisions · Enacted 1982 · no amendments on record · Last verified July 28, 2026

In one sentenceSection 995.250 requires that, whenever a statute allows costs to a party, those costs include the premium the party reasonably paid on a bond the statute required in the action or proceeding, plus any bond premium reasonably paid in connection with the case unless the court finds the bond unnecessary.

Full Text of § 995.250

Text sizeJump to: (a) (b)

If a statute allows costs to a party in an action or proceeding, the costs shall include all of the following:
(a) The premium on a bond reasonably paid by the party pursuant to a statute that provides for the bond in the action or proceeding.
(b) The premium on a bond reasonably paid by the party in connection with the action or proceeding, unless the court determines that the bond was unnecessary.

Plain-English Summary

Bonds cost money, and this section makes sure the winning party can recover that cost as part of ordinary costs of suit. Subdivision (a) covers the plain case: the premium reasonably paid on a bond the statute required in the action or proceeding counts as recoverable costs.

Subdivision (b) reaches a bit further, covering the premium on a bond reasonably paid in connection with the action or proceeding even when no statute specifically required it — unless the court determines the bond wasn't necessary. That qualifier keeps the cost-shifting tied to bonds that served a real purpose in the case.

Frequently Asked Questions

Can a party recover the cost of a bond premium as part of costs of suit?

Yes, if a statute allows costs to that party, § 995.250 includes bond premiums reasonably paid.

Does this cover only bonds a statute specifically required?

No. Subdivision (b) also covers premiums on a bond reasonably paid in connection with the action or proceeding, even without a specific statutory requirement, unless the court finds the bond was unnecessary.

Can a court refuse to award a bond premium as costs?

Yes, for a bond that wasn't specifically required by statute, if the court determines it was unnecessary.

Amendment History

Added by Stats. 1982, Ch. 998, Sec. 1.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 28, 2026. · Official source
Also known as: bond premium recoverable costs californiacan i recover bond premium as costs