Freezing and Search Orders

Question 1

Mareva v International Bulkcarriers

Answer 1

First reported freezing order

Question 2

Siskina v Distos

Answer 2

Freezing order designed prevent judgement for damages being a harmless thunderbolt

Question 3

Allen v Jumbo Holdings

Answer 3

Aeroplanes are an asset

Question 4

The Rena K

Answer 4

Ships are an asset

Question 5

United Kingdom v Lambert

Answer 5

Jewelllery, art and choses in action are assets

Question 6

Derby & Co v Weldon

Answer 6

Guidelines for obtaining a freezing order:

1) Good arguable case
2) Grounds for believing defendant has sufficient assets within the jurisdiction
3) Risk of dissipation (must rebut presumption that D will pay) - objective assessment (adduce evidence of dishonesty)

Question 7

Customs & Excise Commissioners v Anchor Food

Answer 7

Requires good arguable case for risk of dissipation

Question 8

JSC BTA Bank v Ablyazov

Answer 8

Evidence of misconduct or stealing may be used to establish risk of dissipation

Question 9

Re BCCI

Answer 9

Extra-territorial freezing order can be granted if there are insufficient domestic assets and it is not unduly oppressive

Question 10

The Angel Bell

Answer 10

Claimant gets no interest in the property subject to the freezing order

Question 11

The Cretan Order

Answer 11

Claimant has no priority upon insolvency

Question 12

Law Society v Shanks

Answer 12

C should inform third parties who handle D’s assets of the existence of the freezing order

Question 13

Z Ltd v A-Z and AA-LL

Answer 13

Allowances for reasonable living expenses will depend on the nature of the claimant and their standard of living

Question 14

Normid Housing Association v Ralphs and Mansell

Answer 14

Businesses will not be allowed to run bankrupt under a freezing order

Question 15

Yousif v Salava

Answer 15

Search order allows claimant to inspect documents or other articles

Question 16

Anton Piller v Manufacturing Processes

Answer 16

Guidelines for search order:

1) Extremely strong prima facie case on evidence already in possession (higher threshold)
2) Actual or potential damage must be very serious for the claimant
3) Clear evidence that defendant has incriminating documents in their possession and there is a real possibility of their destruction (clear and compelling)

Question 17

Lock International v Beswick

Answer 17

Need for proportionality between perceived threat and remedy granted

Question 18

Chappell v UK

Answer 18

Search orders allowed under HR due to difficulty in obtaining them and stringent safeguards

Question 19

Williams v Barton

Answer 19

Trustee/fiduciary is required to account for any incidental profit they have made in breach of fiduciary duties

Question 20

AG for Hong Kong v Reid

Answer 20

Agent/fiduciary has to account for bribe or secret profits

Question 21

AG v Blake

Answer 21

A person may have to account for profits gained by the unauthorised use of information in breach of confidence