The obligation of full and frank disclosure of documents and information is critical when applying for a freezing injunction. Failure to do it properly can lead to the order being struck out. Our superb team can help advise you on this issue.
With freezing injunctions, the disclosure obligations on the person or company applying for the freezing order (the applicant) are very strict indeed.
Generally, freezing order applications are made without any notice or warning to the respondent. The whole purpose of a freezing order is based on a belief that the respondent will dissipate or hide its assets unless it is forced not to. As with all applications to the court made without notice to the other party, there is a duty on the applicant to give what is called “full and frank disclosure”. That is – set out all relevant facts of the case to the court. This is due to the fact that without notice applications are one sided, i.e. the respondent is not present at the initial application.
- as such, an applicant is obliged to set out all material matters to the court, (factual or legal), which may have a bearing on whether the court grants the freezing order or not. Such disclosure relates not only to matters which are helpful to an applicant’s claim, but importantly any facts or legal issues which are or may be detrimental to an applicant’s claim;
- for example, the applicant is obliged to inform the court as to whether it believes the respondent has any likely defences to the claim or set-offs which it may apply. Equally if the applicant has a previous conviction for dishonesty, this needs to be revealed to the court.
The point is that failure to provide full and frank disclosure to the court may result in a respondent challenging the freezing order at the return date when all the parties are back in court. Ultimately, a lack of full and frank disclosure by the applicant can lead to the freezing order being discharged and if that happens, the applicant faces a risk of a very substantial costs order being made against it.
Francis Wilks & Jones is the county’s leading firm of freezing order solicitors. We are experts in this area of the law, having dealt with many such applications. Our knowledge of the freezing order legislation is second to none and our results excellent. Whatever your enquiry, we can assist. Call now for a friendly consultation.