A Freezing Order is a very serious type of court order. Our legal team has been advising business, financiers and individuals since 2002 on all aspects of freezing injunctions. Let us help you too.
Often, people believe that a freezing order completely stops someone disposing or removing of an asset identified in the freezing order (or assets up to the value set out in the freezing order). Technically, this is not correct. Whilst a freezing injunction aims to restrain or stop an individual, company or other legal entity disposing of or dealing with assets, it doesn’t physically prevent the movement of the assets.
- the threat (and reason why freezing orders are so important) is very much in the punishment which is applied if the freezing injunction is not complied with. If someone breaches the terms of the freezing order, they can be sent to prison for contempt of court;
- therefore, whilst freezing injunction often have the desired effect of stopping assets being put beyond a creditor’s reach, the granting of a freezing injunction doesn’t necessarily mean that this is the case.
However, obtaining a freezing order is often the closest you will get to “freezing” assets and can be extremely effective in the right circumstances. An asset freeze order can make the difference between ultimately getting paid out on the substantive dispute you have with a defendant and leaving you with a Pyrrhic victory whereby you may obtain judgment but then be unable to enforce that judgment.
Whilst a freezing injunction is quite difficult to obtain from court, the remedy is there for specific reasons and the court will under certain strict circumstances grant freezing injunctions or Mareva injunctions.
If you are interested in knowing more about freezing injunctions, contact one of the expert team at Francis Wilks & Jones and we can assist you in this type of work.