Dispute - Application for Freezing Order

Question 1

Under what CPR are the required grounds to for a freezing order set out?

Answer 1

CPR 25; and

Practice Direction 25A

Question 2

What are the grounds that must be met in order for a freezing order to be made?

Answer 2

1) There is a cause of action which may give rise to a judgement that can be enforced against the respondents assets;

2) The applicant has a good and arguable case;

3) That there are sufficient assets to meet the claim; and,

4) That there is a real risk of the disposal or dissipation of the assets.

Question 3

Does a counterclaim constitute a sufficient ‘cause of action’ for a freezing order application?

Answer 3

Yes. Provided always that the counterclaim may give rise to a judgement that can be enforced against the respondents assets.

Question 4

Are there any requirements which must be satisfied by an applicant seeking a freezing order?

Answer 4

Yes.

The applicant must:-

1) Provide an undertaking to the court to pay any damages to respondent if later shown that the injunction should not be granted; and,

2) The applicant must provide ‘full and frank’ disclosure.