HomeFWJ TakeawayFraud and freezing ordersApplying for a freezing orderFreezing injunctions – cross undertaking in damages explained

The court will require what is called a "cross undertaking in damages" before granting a freezing order. An undertaking to the court is a very serious thing - and vital for anyone considering applying for a freezing injunction to fully understand.

People applying for freezing injunctions must pay heed to the requirement to give an undertaking in damages to the court at the outset of proceedings. This is in the event that it is later shown that the freezing order should not have been granted and the respondent has suffered loss as a result.

  • the court may even make it a condition of the freezing injunction that the applicant has to actually pay monies into a court bank account which will be held there until trial or earlier order in the main proceedings.
  • this amount could easily be in the region of £50,000 (or much higher dependent on the value of the claim) and before commencing an application the applicant should consider whether payment of such a sum is possible and the affect it might have.

In addition, if an applicant loses its main claim or the freezing order is discharged for any other reason, it needs to be aware that it can be held liable for a substantial claim in damages pursuant to the undertaking it has given (if this exceeds the payment into court) and generally in the substantive proceedings.

All applicants need to be fully advised by their solicitors with regard to a potential liability under the cross undertaking for damages. We can advise you on this important aspect.

If you have a freezing injunction question we are the firm to help you. We provide professional and cost effective advice on aspects of freezing orders. We do so on an immediate basis as we understand the critical timing issues involved with freezing injunction claims. Call now us now to speak to one of our expert lawyers. 

Case studies

View all case studies

Contact us in confidence