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Freezing injunctions

A freezing injunction is a court order which prevents a party from disposing of or otherwise dealing with its assets.  This is a useful tool to seek to protect assets if a party fears that another party may dispose of assets before or during court proceedings.

What is required to justify the granting of a freezing injunction?

The court has a wide discretion when considering whether to grant freezing injunctions. Several conditions must be satisfied for the court to exercise its discretion:

  • The English courts must have jurisdiction.
  • The applicant must have an underlying legal or equitable right (cause of action).
  • The applicant must have a good arguable case.
  • Sufficient assets should exist in relative to the value of the claim.
  • There must be a real risk that the assets will be dissipated.
  • The applicant must provide an undertaking to the court for damages (that they will pay any damages incurred by the respondent by virtue of the freezing order if it transpires that the order ought not to have been made).

What happens if you are served with a freezing injunction?

A freezing injunction can be catastrophic for a company or individual.  They can prevent a party from using assets for general living expenses or funding legal representation.

A party served with a freezing order should seek urgent legal advice on its terms, as as a failure to comply could result in committal proceedings or other sanctions.

At Brett Wilson, we can advise both applicants and respondents regarding obtaining and seeking the variation/discharge of a freezing injunction.

Case Study

I have been served with a freezing order: what should I do?

How do I instruct Brett Wilson LLP?

If you wish to apply for a freezing injunction or have been served with a freezing injunction and wish to discuss your options, one of our specialist solicitors is able to help.

Get in touch with one of our specialist insolvency solicitors by sending us an emailcompleting our online enquiry form or calling us on 020 7183 8950 .  If emailing or using the online form, please provide a short outline of your situation.


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