If you are considering applying for a freezing injunction, it is essential that you consider all the implications of this legal remedy and the short to long term consequences of proceeding with it. Our team have been advising individuals, companies and financiers since 2002. Let us help you too.
It is not always easy to freeze someone’s assets. As a starting point, courts are very wary of interfering with a personal company’s rights and ability to deal with what would appear to be its own assets. Therefore, placing restrictions on the ability to deal with those assets is something the court will not grant lightly.
How to obtain a freezing order
However, in certain circumstances (most usually involving allegations of dishonesty or fraud), the courts may be persuaded to make an order which prohibits a company or person from dealing with his / her / its own assets. However, the circumstances in which a freezing order are granted are very carefully controlled and the ability to seek such an order from the court freezing assets is quite complicated.
- there are many different legal, evidential and procedural rules to follow and preparation of the affidavit (witness statement) evidence in support of the freezing order application together with all of the attached documentation to that statement needs to be very carefully put together.
- as well as the procedural aspects of freezing injunction – such as the freezing injunction application form, instructing a barrister to attend the court hearing and collating all of the relevant service requirements relating to the documents, there is also the legal argument which needs to be carefully considered. This is commonly undertaken by the freezing injunction barrister who will prepare a freezing injunction skeleton argument prior to the court hearing itself.
- another key aspect relates to disclosure of the documents. There is a rule relating to what is called full and frank disclosure by a party applying for a freezing injunction is obliged to tell the court any relevant facts relating to the application even if they are adverse to the applicant itself. Failure to be completely open with the court on all key issues can ultimately lead to a freezing injunction being discharged at a later date often with a very hefty adverse costs order.
Our strong advice is never to try and make these types of applications without legal advice. They are amongst the most complex applications heard before a court and as such, good legal advice from a trusted team is always recommended.
Francis Wilks & Jones have many years’ experience dealing with freezing injunction and asset freeze situations. We have acted for individuals, companies and other entities both in England and Wales and on a worldwide freezing order basis. Whatever the nature of your enquiry we are here to help you.