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What is needed to obtain a Freezing Order?

The courts have set out six conditions to obtain a Freezing Order.

  • You must have a legal or equitable claim.
  • The English court must have jurisdiction.
  • You must have a good arguable case.
  • Assets must exist.
  • You have to prove that there is a risk that the assets will be dissipated.
  • You have to provide an undertaking in damages.

What is an undertaking in damages?

Before the court will grant a freezing order you have to undertake to the court to pay any damages that the other side or any other party notified of the Order might suffer as a result of the Freezing Order being granted if, at a later date the court decides the Order ought not to have been granted.

This has to be considered seriously before making an application for a Freezing Order.

Dissipation

You have to show that there is a real risk that a Judgment against the Defendant will not be paid unless restrained by an injunction the Defendant will dissipate or dispose of assets.

Or unless an Injunction Order is made, assets will be dealt with so as to make enforcement of a Judgment more difficult.

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