Freezing injunctions, also known as freezing orders or Mareva injunctions, are potent legal remedies used to prevent a defendant from dissipating assets in a manner that could undermine the enforcement of a potential judgment. These injunctions can be either domestic, applying within a single jurisdiction, or worldwide, extending across multiple jurisdictions. This article explores both types of injunctions, their applications, legal frameworks, and strategic considerations.

What is a Domestic Freezing Injunction

A domestic freezing injunction is a court order that restrains a defendant from disposing of or dealing with assets within the jurisdiction of the issuing court. The primary purpose is to preserve the status quo and ensure that the defendant’s assets remain available to satisfy a potential judgment. Legal Framework in jurisdictions like the UK, domestic freezing injunctions are rooted in common law and governed by procedural rules such as the Civil Procedure Rules (CPR).

The key requirements for obtaining a domestic freezing injunction include:

1. Good Arguable Case: The claimant must demonstrate a solid foundation for their underlying claim.
2. Risk of Dissipation: Evidence must be presented showing a real risk that the defendant will dissipate their assets to frustrate the enforcement of a judgment.
3. Just and Convenient: The court must be convinced that it is just and convenient to grant the injunction.

The process of obtaining a domestic freezing injunction typically involves filing an application. The claimant files an application supported by an affidavit detailing the facts of the case, the nature of the claim, and evidence of the risk of dissipation.

Ex-Parte Hearing: Often, the application is heard ex parte (without the defendant being present) to prevent the defendant from taking pre-emptive action. After the initial order is granted, a return date is set for a full hearing where the defendant can challenge the injunction.

What is a Worldwide Freezing Injunction

A worldwide freezing injunction (WFI) extends the restraint on the defendant’s assets globally, beyond the borders of the jurisdiction where the order is issued. WFIs are crucial in international litigation involving assets spread across multiple countries. WFIs originate from English common law, with the landmark case Mareva Compania Naviera SA v International Bulkcarriers SA [1975] establishing their foundations. The principles set forth in this case have influenced jurisdictions worldwide.

To obtain a WFI, the claimant must meet similar requirements as for domestic injunctions, but with added considerations for the international scope.

Application Process

The process of obtaining a WFI is more complex due to its international implications. When filing an application, it is similar to domestic injunctions, but with additional evidence regarding the international aspects of the defendant’s assets. The initial hearing is typically ex-parte to prevent asset dissipation. Once granted, the injunction must be notified and enforced in foreign jurisdictions, which may require local legal proceedings.

Choosing a Domestic versus a Worldwide Injunction

The choice between a domestic and worldwide freezing injunction depends on the location of the defendant’s assets and the nature of the claim. If assets are located solely within one jurisdiction, a domestic injunction suffices. However, if assets are spread across multiple jurisdictions, a WFI is necessary.

Enforcement Challenges

Enforcing a WFI involves navigating different legal systems, which can be complex and time-consuming. Co-operation with local legal experts is essential to ensure effective enforcement.

Both types of injunctions carry risks of non-compliance by the defendant, leading to potential contempt of court proceedings. Additionally, wrongful freezing orders can result in significant damages against the claimant, emphasising the need for careful consideration and solid evidence before seeking an injunction.

Adam Haffenden’s Expertise

Adam Haffenden who is a Partner and Head of Dispute Resolution at TV Edwards LLP is a prominent legal practitioner renowned for his significant experience and expertise in dealing with freezing injunctions and cross border enforcement of foreign judgments.

His career highlights include:

High-Profile Cases: Adam has represented clients in several landmark cases involving WFIs and domestic freezing injunctions, providing strategic advice on obtaining, enforcing, and challenging these injunctions.

Cross-Border Expertise: Given the global nature of WFIs, Adam’s ability to navigate multiple jurisdictions has been pivotal in securing and enforcing orders internationally.

Advisory Roles: He has advised major corporations and high-net-worth individuals on the complexities and implications of WFIs, ensuring compliance and protecting their interests.

Scholarly Contributions: Adam has authored articles on the subject, contributing to the legal community’s understanding of freezing injunctions in the UK. His insights have been featured in a leading London business journal.

Recent Freezing Injunction Work

Case Study 1: Asset Protection in Fraud Litigation and Cross border Enforcement.
In a notable case, Adam successfully obtained a Worldwide Freezing Injunction against several defendants in a multi-million-pound civil fraud case. His meticulous preparation and persuasive arguments with his legal counsel convinced the court of the imminent risk of asset dissipation, securing his client’s position and ensuring the assets remained available for potential recovery in the foreign jurisdiction. His client commented:

“Adam you were absolutely fantastic when dealing with our fraud case and the way you secured a worldwide freezing injunction against the defendants, we cannot thank you enough for your hard efforts. Highly recommend Adam for any litigation work“.

Case Study 2: Domestic Freezing Injunction.
In another recent case, Adam succeeded with obtaining a freezing injunction against a defendant, who had been detained in a Chinese prison further to a judgment being obtained by Adam’s client in China, which they sought to obtain a reciprocal judgment in the UK to enforce against UK based assets the defendant owned in this jurisdiction up to value of £5.5 million.

Case Study 3: Domestic Freezing Injunction.
Adam won another recent freezing injunction case which froze the defendant’s assets in the UK up to the value of £75,000 which the defendant had indicated she was going to be dissipating. This resulted in all of the client’s money being returned to the client directly from the defendant’s bank account to enable the injunction to be lifted and was another seamless outcome for Adam and his litigation team. The delighted client wrote the following testimonial.

“I cannot express how relieved and grateful I am after securing a freezing injunction with the assistance of my legal team. When I discovered the imminent threat to my assets, I was overwhelmed with stress and uncertainty. However, from the moment I engaged Adam Haffenden, his expertise and dedication was evident. Adam with support from his team, meticulously gathered the necessary evidence, crafted a compelling case, and navigated the complex legal process with precision and confidence. The court’s decision to grant the freezing injunction was a pivotal moment, providing me with immediate protection and peace of mind. This success not only safeguarded my assets but also prompted the defendant in agreeing to release all outstanding monies owing to me from her bank account. I extend my heartfelt thanks to my legal team for their unwavering support and exceptional skill in achieving this crucial outcome. I highly recommend Adam Haffenden’s services to anyone facing similar challenges, he really is at the top of his game in this area of law”.

How we can help

Adam’s Haffenden’s significant experience and expertise make him a leading authority in this area, capable of navigating the intricate legal and practical challenges these injunctions present.

Should you be looking to obtain or defend a domestic or worldwide freezing injunction contact Adam Haffenden 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.