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 a rule of thumb that courts will not grant freezing injunctions without very good reason. This is because they go against a fundamental principle that an individual should be able to deal freely with his or her own assets. Therefore, there are strict and onerous obligations on a party seeking to obtain an order of this nature from the court, particularly on a without notice basis.
“Without notice” applications
Most freezing injunctions are sought without any prior notice or warning to a respondent (“without notice applications”). This is because the applicant does want to give the respondent any opportunity to remove or hide its assets.
However, in the absence of the respondent being present at the initial hearing, the evidential and legal burden on the applicant is very high in order to successfully get an order. The court has to be very satisfied that the freezing injunction is appropriate to grant and will look at the application very carefully.
The court has compete discretion
The granting of a freezing injunction is entirely at the court’s discretion. The court will always consider whether it is just and convenient to grant a freezing order. Applications will be refused if the injustice and /or detriment that would be caused to a respondent outweighs the benefit that is gained by the applicant. Equally, the court will take into consideration the applicant’s conduct and how quickly they have acted in seeking an order. Any delay in making the application will severely damage the chances of a successful application.
What an applicant will have to show to obtain a freezing order
In order to obtain a freezing injunction, an applicant must show the following:-
- A good arguable case;
- There must be a risk, or a real risk of the respondent dissipating (removing out of reach) his / her assets;
- The applicant must provide a cross undertaking in damages;
- The applicant must comply with the duty of full and frank disclosure.
All of the above four areas and more are covered in detail in other web pages on our site.
Francis Wilks & Jones is the county’s foremost firm of freezing order solicitors. If you are considering applying for a freezing order, or defending one, speak to one of our expert team today. Don’t settle for second best.