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BPTC Law Notes BPTC Civil Ligitation Notes

Freezing Injunctions And Search Orders Notes

Updated Freezing Injunctions And Search Orders Notes

BPTC Civil Ligitation Notes

BPTC Civil Ligitation

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Freezing Injunctions

What is a freezing injunction? It is an interim order that restricts a party from removing assets located within the jurisdiction out of the country, or generally dealing with assets whether in the jurisdiction or not.
What is the procedure for applying for a freezing injunction?

A freezing injunction application must usually be:

  • Dealt with in the High Court;

  • Made to a judge sitting in private;

  • Made without notice in order to be effective;

  • Made before service of the claim form;

  • Made with full and frank disclosure; and

  • Supported by evidence within affidavits.

Following an granting of a freezing injunction, a hearing must be arranged a few days later on notice with the respondent being provided with all the evidence used by the applicant.

What are the requirements for the court to make an order for a freezing injunction?

It must be ‘just and convenient’ to do so; and the case is

  1. A cause of action justiciable in England & Wales;

  2. A good arguable case - this is high than ‘serious issue to be tried’, but doesn't require judge believing case has better than 50% chance of success;

  3. D having assets within the jurisdiction; and

  4. A real risk that D will dissipate his assets before judgment can be enforced - this required solid evidence.

What terms must be incorporated into an order for a freezing injunction?

The terms to be included can be divided into topics:

Undertakings by Claimant (‘C’)

  1. To pay damages to defendant (‘D’) should the injunction be found to have been incorrectly made;

  2. To notify D forthwith of the terms of the order (since made without notice);

  3. To pay reasonable costs and expenses of third parties (‘TPs’) in complying with the order; and

  4. To indemnify any TPs in respect of any liability incurred as a result of the order.

  5. [In cases of urgency to issue a claim form and to swear and file affidavits deposing the facts relied on by the judge.]

Assets covered by the order

This may either be a:

  1. General order, which covers all D’s assets;

  2. Maximum-sum order, which covers D’s assets up to the highest amount that the case may require; and

  3. Orders attached to specific assets.

Can a freezing order be varied or discharged, and on what grounds?

An application to vary or discharge a freezing injunction can be made under Part 23, either at the return on-notice hearing or at another hearing especially for the application.

Grounds for variation

  • Original order is more onerous to D than necessary; or

  • Imposes unnecessary obligations on a third-party.

Grounds for discharge

  • Case unsuitable for freezing injunction - one of the requirements is not made out, e.g. good arguable case;

  • D agrees to provide sufficient security for the claim;

  • Where the order was made where C did not make material disclosures;

  • Unfair conduct on the part of the C;

  • Failure on the part of the C to press on with the substantive proceedings after the order.

Search Orders

What is a search order? This...

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