Freezing order

Question 1

What must the applicant establish to obtain a freezing order?

Answer 1

1. A good arguable case
2. Defendant/Respondent has assets within the jurisdiction
3. Real risk of asset dissipation
4. Order is just and convenient
5. Other factors considered by the court

Each of these points must be substantiated to secure a freezing order.

Question 2

What does a ‘good arguable case’ entail?

Answer 2

A case that is more than barely capable of serious argument, not necessarily having a greater than 50% chance of success at trial

This is a lower threshold than the balance of probabilities.

Question 3

What must be shown regarding the defendant/respondent’s assets?

Answer 3

Respondent holds assets against which a relevant judgment could be enforced

Assets can include trusts and companies.

Question 4

What does paragraph 6 of the standard form freezing order prevent?

Answer 4

Prevents a respondent from removing or disposing of or dealing with assets, whether in their name or jointly owned

Also applies to assets they have the power to dispose of or deal with as if they were their own.

Question 5

What is required to demonstrate a real risk of asset dissipation?

Answer 5

Demonstrate a ‘sufficient risk’ inferred from the respondent’s conduct and character

being a banker means D might know how to move money around more quickly

Question 6

What types of evidence can support the assertion of a real risk?

Answer 6

• Respondent has been dishonest
• Defaulted on a debt
• Started to remove or dissipate assets
• Assets in jurisdictions where English judgments are hard to enforce
• Lives in a tax haven

The evidence must be solid and more than fanciful.

Question 7

What does it mean for the order to be ‘just and convenient’?

Answer 7

a. The person protected by the injunction has merit in being protected
b. There must be a legal or equitable principle justifying the court’s exercise of power.

Question 8

What other factors will the court consider?

Answer 8

• Evidence of asset manipulation
• Moving assets out of jurisdiction
• Financial standing and credit history of the respondent
• Statements made and conduct of the respondent

Question 9

True or False: A freezing order can be issued without any evidence of asset manipulation by the respondent.

Answer 9

False

Evidence of manipulation can be a critical factor in the court’s decision.

Question 10

Fill in the blank: To establish a good arguable case, the applicant must show a case that is more than _______.

Answer 10

barely capable of serious argument

This case does not need to exceed a 50% chance of success.