A freezing injunction, also known as a Mareva injunction or freezing order, prevents a defendant from disposing of their assets before the conclusion of a legal claim.
If you are involved in a legal case and you believe that the other side may attempt to put their assets beyond reach so that any compensation you are awarded cannot be paid, it is important to act quickly. Mareva injunctions can be awarded on an emergency basis where necessary.
If you are the subject of a Mareva injunction, you must comply with its terms. In both cases, it is advisable to speak to an expert commercial disputes solicitor without delay.
Summary
- What is a Mareva Injunction?
- How Do I Get a Freezing Order?
- What Assets Are Covered by a Mareva Injunction?
- Contact Our Commercial Dispute Resolution Solicitors
What is a Mareva Injunction?
A Mareva injunction is a legal order that aims to stop an individual from disposing of or hiding their assets during a court case. Without an injunction, there could be a risk that money will be moved so that even if you win your case, you will not be able to collect any damages that you are awarded.
When is a Mareva Injunction Used?
It is not usually necessary to obtain Mareva injunctions or freezing orders when bringing a claim unless you have a suspicion that assets will be hidden. If you believe that fraud has occurred or that the defendant is dishonest and may try to avoid paying an order, you should take legal advice on applying for an injunction.
How Do I Get a Freezing Order?
A range of evidence is needed in support of an application for a Mareva injunction. Firstly, you will need to show that your original claim is a good, arguable case. This does not mean that you need to show that you are likely to win, but that there is a serious issue to be tried.
The court also needs to be satisfied that there is a real risk that assets will be dissipated, and you will need to provide evidence that your belief is not a mere suspicion. Facts that the court will look at when deciding whether to make a freezing order commonly include:
- The type of assets the defendant has and whether they could be quickly and easily disposed of
- Where the defendant is based
- If the defendant has a business where this is based
- The defendant’s financial position and the size of the claim against them
- If the defendant owns a business, how well-established it is
- Any evidence there may be that the defendant might be likely to dissipate assets, such as threats to move assets, previous defaulting on judgments and lack of cooperation
Putting together a robust case is essential to ensure you have the best chance of securing an injunction and protecting your position.
What Assets Are Covered by a Mareva Injunction?
The applicant can ask for an order in respect of assets in England and Wales or, where necessary, to protect worldwide assets. It is relatively common to request a worldwide freezing injunction when applying for a Mareva order.
Assets included within the scope of a Mareva injunction will generally include all assets, ‘whether the Respondent is interested in them legally, beneficially or otherwise.’
The defendant may still be able to secure a loan, and this money would not be covered by freezing injunctions.
It is usual for full and frank disclosure of the value, location and detail of all assets to be ordered. It is also possible to apply for further information, such as details of bank transactions and the identity of creditors.
How Long Does a Mareva Injunction Last?
It may be necessary for the court to grant an emergency injunction. If it does, this will last until a full hearing occurs, or for a set period.
At the full hearing, the court will decide how long the injunction should remain in force. This is usually a period of weeks or months at most.
How Much Does a Mareva Injunction Cost?
The cost of preparing a case and applying for a Mareva injunction will depend on the size of the case, the evidence required and the scope of the order being requested. We can discuss this in detail if you wish to explore taking out a freezing order.
Contact Our Commercial Dispute Resolution Solicitors
If you need advice on a dispute or you wish to discuss freezing orders, contact us today and we will be happy to help. For more information on our services, see our litigation and dispute resolution page.To speak to one of our expert litigation and dispute resolution solicitors, ring us on 0330 173 3980, email us at info@witansolicitors.co.uk or fill in our contact form and we will talk through your situation with you and discuss how we can assist.
