It is important for a defendant and applicant to understand what assets are caught under the terms of a freezing injunction. Our superb freezing order team can help advise.
A freezing injunction may only attach to assets against which a court judgment could potentially be enforced.
Over the years, a wide range of assets have been caught by the terms of a freezing order. The terms of the order will always be strictly interpreted.
What types of assets are covered?
In principle, all types of assets can be frozen including, for example
- bank accounts;
- motor vehicles;
- land; and
- intangible assets such as goodwill.
Excluded assets include those which are perishable – food being an example.
The respondent must have an interest in the assets
It is necessary to show that the respondent/ defendant has either a legal or beneficial interest in the asset in question. Assets can be jointly owned or held by a third party for the benefit of a respondent. If shares are frozen, the court order should also ensure that the company is restricted from dealing with the shares (possibly reducing the value of those shares).
It is not always possible at the time of applying for a freezing injunction to know whether a respondent owns a particular asset or not. Where there is doubt the terms of the freezing order should include them and, if necessary, they should be amended at a later date.
Please contact one of our friendly freezing order solicitors for your consultation. Whether you are looking to apply for a freezing injunction or have received one, we can help.