What is a Norwich Pharmacal Order?

A Norwich Pharmacal Order (“NPO”) is an order requiring a respondent to disclose certain documents to the applicant upon request. It allows information to be obtained from third parties who have become ‘mixed up’ in wrongdoing, helping victims to investigate, pursue those ultimately responsible and recover their losses.

NPOs are often used where a victim of wrongdoing does not know the identity of the wrongdoer but can point to a third party who has this information. They can also be used to trace assets and obtain other information needed by the victim to put together its case against the wrongdoer.

The NPO was established in Norwich Pharmacal v Commissioners of Customs & Excise [1974] UKHL.

Criteria for obtaining a Norwich Pharmacal Order

The requirements which must be satisfied to obtain an NPO are:

• There is no CPR provision that would provide the appropriate relief.
• The respondent is likely to have relevant documents or information.
• There is a good arguable case that there has been wrongdoing.
• The “mere witness” rule is not infringed.
• The respondent is involved in the wrongdoing.
• The order is necessary in the interests of justice and is not sought for an improper purpose.
• The applicant is good for the cross-undertaking in damages.

Procedure for applying

The process of applying for an NPO is to make an application to the High Court. This
application must be accompanied by;
• a witness statement setting out the background of the case and how the criteria, as set out above, is satisfied
• a draft of the order they seek to make.

In many circumstances the respondent will be given notice, however, sometimes in urgent situations such as where the purpose of the NPO is to seek a freezing injunction it may be that an application is made without notice. Once the order has been granted, it should be served on the respondent. Where the NPO has been made ‘without notice’, a full note of what was said at the hearing must also be served on the respondent.

This can be used separately or in conjunction with a freezing injunction to secure evidence and identify the assets, then prevent the dissipation of those assets through a freezing injunction. For example, a third party may hold information about an individuals bank account, a NPO could be used prior to the freezing injunction to disclose the evidence which can then be used to apply for a freezing injunction.

Using the information from the NPO, a party can then quickly act to freeze an individual’s assets, preventing further loss. An NPO can also be used to strengthen the application for the freezing injunction because it can be used to show that there is a significant risk of asset dissipation. The use of NPO and freezing injunction in combination can be a tactical approach to litigation.

Costs

The award for costs is at the court’s discretion, in most circumstances the applicant will be ordered to pay the costs incurred by the respondent in complying with the order and the respondent’s legal costs.

How we can help?

Our specialist Dispute Resolution team has extensive experience in obtaining Norwich Pharmacal Orders for clients and receives excellent feedback, together with its work on freezing injunctions. If you would like to discuss further, please contact Partner Adam Haffenden from the Dispute Resolution team on 0203 440 8139 or email adam.haffenden@tvedwards.com

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.