Freezing Injunction Solicitors - Make a Claim
Expert Commercial Law have a panel of freezing injunction solicitors on hand to assist clients. Arrange a consultationWhat is a Freezing Injunction?
A freezing order/freezing injunction is a court order that restricts a party from disposing of, dealing with, or dissipating their assets. The purpose of a freezing injunction is to prevent a defendant from moving or hiding their assets in order to prolong the claimant’s ability to recover what they are owed or to enforce a judgment.
Freezing injunctions are typically sought in cases involving substantial financial claims, such as complex commercial disputes, fraud cases, or disputes over the recovery of funds. They are often used as interim injunctions when there is a concern that a defendant may try to transfer assets offshore, sell property, or dissipate funds to make it difficult for the claimant to enforce a judgment or recover damages.
The granting of a freezing injunction requires the claimant to demonstrate to the court that there is a real risk of dissipation of assets and that a substantive claim justifies the freezing of those assets to stop the defendant from disposing of the assets. The court will consider factors such as the strength of the claimant’s case, the defendant’s behaviour, the value and location of the assets, and the overall interests of justice.
Once a freezing injunction is granted, it usually applies to all of the defendant’s assets, whether they are located within England and Wales or overseas (with a worldwide freezing order). The defendant must comply with the terms of the order and refrain from disposing of or dealing with their assets beyond certain specified limits. Failure to comply with a freezing injunction can result in contempt of court proceedings, which can lead to fines or imprisonment.
Freezing injunctions are complex legal measures that require careful preparation and skilled legal representation. If you believe a freezing injunction may be relevant to your situation, then our team at Expert Commercial Law can put you in touch with an experienced and knowledgeable freezing injunction solicitor who specialises in this area of the law.
Applying for a Freezing Injunction
The application for a freezing injunction must go through the court. To obtain a freezing order, an application must be made in writing and must include the following information:
- The applicant’s name and contact details.
- The respondent’s name and contact details.
- A brief description of the case.
- The reasons why the applicant believes that they have a good arguable case against the respondent.
- The reasons why the applicant believes that there is a risk that the respondent will dissipate their assets if a freezing injunction is not granted.
- The reasons why the balance of convenience favours granting the injunction.
The application must be supported by an affidavit, a sworn statement of the applicant’s evidence.
The court will usually consider the application urgently and may decide without giving the respondent a chance to respond. If the court grants the injunction, it will usually order the respondent to provide security, such as a bond or a deposit, to ensure that the respondent will pay any damages that the applicant might suffer if the injunction is later found to have been wrongly granted.
A penal notice can also come alongside the injunction, emphasising the seriousness and consequences of non-compliance with the order. It serves as a warning to the party bound by the order that failure to comply may result in contempt of court proceedings.
What assets can the court freeze?
The high court can hold assets the respondent owns, including assets that are held in the respondent’s name, as well as assets that are held in the name of a third party, such as a spouse or business partner. It can include bank accounts, shares and vehicles.
The court will usually consider the following factors when deciding what assets to freeze:
- The value of the asset.
- The likelihood that the respondent will dissipate the asset if it is not frozen.
- The convenience of freezing the asset.
- The impact of freezing the asset on the respondent’s ability to meet their day-to-day expenses.
In some cases, the court may order the respondent to provide security for the value of the frozen assets. This means that the respondent must put up money or other assets as a guarantee that they will comply with the injunction.
Freezing injunctions are a powerful tool for protecting assets, but they are not without their risks. If a freezing injunction is granted without proper justification, it can be costly and embarrassing for the respondent. It is important to seek legal advice from a specialist freezing injunction solicitor before applying for a freezing injunction.
How can Expert Commercial Law assist?
Our panel of freezing injunction solicitors can assist parties in taking legal action against a defendant that might be at risk of dissipating assets.
Our panel firms provide guidance throughout the process and can help protect their client’s rights and interests. They can also help evaluate the strength of the case and advise on the best course of action. If you need help with a freezing injunction order, then please get in touch with us today.
Our solicitors also help with commercial claims, such as partnership disputes, fraud claims and CCJ removal.
Please note we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a freezing injunction query or a commercial law case, we will pass your case on to a panel firm in return for a fee from our panel firms. We will never charge you for passing your case to a panel firm.
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Please note, we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm in return for a fee from our panel firms. We will never charge you for passing on your case to a panel firm.
