Opinion ID: 2499424
Heading Depth: 3
Heading Rank: 2

Heading: W.R.C.P. 65(c) Bond Requirement

Text: [¶ 97] OSA contends the district court also erred in failing to require that the Town post a security for any damages OSA might incur as a result of the TRO. The Town responds that Rule 65(c) should be read to require a bond only if the district court finds a likelihood of harm to the defendant. [¶ 98] We agree with the Town that under Rule 65(c), if the district court finds no likelihood of harm to the defendant, no bond is necessary. We nonetheless find error because the rule requires that the district court, in the exercise of its discretion, expressly consider whether there is a likelihood of harm and whether security must be posted, and in this case, the district court did not give consideration to these matters. See Coquina Oil Corp. v. Transwestern Pipeline Co., 825 F.2d 1461, 1462 (10th Cir.1987) (citing Reinders Bros. v. Rain Bird E. Sales Corp., 627 F.2d 44 (7th Cir.1980); Roth v. Bank of the Commonwealth, 583 F.2d 527 (6th Cir.1978); System Operations, Inc. v. Scientific Games Dev. Corp., 555 F.2d 1131, 1145-46 (3rd Cir.1977)) (court must consider whether bond is required and make findings otherwise order is unsupportable); see also Continental Oil Co. v. Frontier Refining Co., 338 F.2d 780, 782 (10th Cir.1964) (if court finds no likelihood of harm to defendant, bond is not required). [¶ 99] It is unlikely that OSA suffered damages as a result of the twelve-hour TRO issued by the district court, and during oral argument to this Court, OSA was unable to articulate any particular damage it may have suffered. The district court was nonetheless required to make findings as to the likelihood of harm to OSA, and it abused its discretion in issuing the TRO without those required findings.