Estimated read time: 1-2 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY (AP) -- Rebel Bail Bonds has filed a lawsuit contending the state Department of Insurance was wrong to have temporarily suspended its right to issue more bonds.
The lawsuit filed last week in U.S. District Court said the company's reputation was sullied and its business hurt because of the suspension.
The lawsuit, which named insurance department officials as defendants, is seeking unspecified monetary damages and an injunction stopping any violations of its right to due process.
The department had contended that the firm had exceeded the amount of bail it could extend to customers.
The company said slow reporting by court clerks when bonds were cleared had led to an inaccurate figure.
Deputy Commissioner Neal Gooch said Friday that he cannot comment because the department has not been served yet, but added, "It's not our practice to do anything without due process."
Rebel, which is based in Duchesne and does business throughout Utah, is allowed to have up to $2.26 million in bond obligations.
On June 8, the department said Rebel was over the allowed limit by almost $1.4 million and ordered the company to immediately cease writing bonds.
Rebel won a temporary reprieve June 15 after it produced records proving that many of the outstanding bonds had been exonerated when its clients showed up for their court hearings as required. The suspension was completely lifted at the end of August.
The suit contends that Rebel should have been given the opportunity to refute the allegations before it was ordered to stop writing bonds.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
