Freezing Injunctions

What is a Freezing Injunction?

A Freezing Injunction, more commonly known as a Freezing Order, effectively freezes the defendant’s assets until the claimant’s action comes to trial.

When can a Freezing Injunction be sought?

Claimants can apply for a Freezing Injunction where there is a risk that the defendant will dispose of his property or move his assets out of the jurisdiction in order to prevent a Court Order being enforced.

Such an injunction is usually restricted to the defendant’s property / assets within the jurisdiction and will be limited to the likely value of the judgment amount.

What is the effect of a Freezing Injunction?

If a Freezing Injunction is granted, the defendant will be prohibited from dealing with his property / assets. However, the defendant will be allowed a specific weekly amount to meet his day-to-day living expenses. The defendant will also be able to claim a specified weekly sum to pay for business expenses and legal costs. If the defendant is a smaller business, the Order will usually allow the defendant sufficient monies to discharge trade debts.

What are the penalties for breaching the Injunction?

Anyone who has been notified of the Injunction will be in contempt of court if he helps the defendant to break it.

What steps can a defendant take?

A defendant may apply to set-aside or vary the Injunction. If the Injunction is set aside, the claimant could be ordered to pay compensation under the claimant’s cross undertaking.

For further details and advice please contact:

Mark Whittell

Tel: 0845 165 5252

mark.whittell@cobbetts.com

Nicholas Carr

Tel: 0845 404 1520

nicholas.carr@cobbetts.com

Keith Mills

Tel: 0845 404 2426

keith.mills@cobbetts.com

The content of this briefing note is merely informative and should not be relied upon as a substitute for legal advice.

Copyright 2007 - All Rights Reserved - March 2007