What is a freezing injunction?
A freezing injunction is an interim court order designed to prevent a defendant from disposing of or dealing with assets in a way that would frustrate enforcement of a future judgment. The jurisdiction is equitable and exceptional; the court considers the underlying claim, the evidence concerning dissipation and whether it is just and convenient to make the order.
Applications are commonly made under section 37 of the Senior Courts Act 1981 and CPR Part 25. The precise legal test and form of order depend on the case and the relief sought.
Urgency does not reduce the evidential burden.
Without-notice applications demand careful evidence and full and frank disclosure. An applicant must fairly put material points before the court, including matters that may assist the respondent. A defective application can have serious costs and discharge consequences.
For applicants
Underlying claim
The court will examine the merits of the substantive claim. Pleadings, contracts, communications and evidence should be organised before urgent relief is sought.
Risk of dissipation
Suspicion alone may not be enough. The evidence should address why there is a real risk that assets will be dealt with so as to frustrate judgment.
Asset picture
Identify the assets and value realistically. An unnecessarily broad order can create proportionality and enforcement problems.
Cross-undertaking
Applicants will usually be required to give a cross-undertaking in damages. The financial implications need to be understood before the application is made.
For respondents
A respondent should read the order immediately and comply while taking advice. The order may require asset disclosure, restrict payments and impose obligations on third parties. Deliberate breach can amount to contempt of court.
At or before the return date, issues can include whether the original order should continue, whether the applicant satisfied the duty of full and frank disclosure, whether the risk of dissipation is evidenced, whether the order is too wide, and whether allowances are needed for ordinary living, business or legal expenses.
Variation and discharge
An order can sometimes be varied by agreement or application. A respondent may seek access to funds for defined expenditure, release of particular assets, reduction of the frozen amount or discharge of the order altogether. The correct route depends on the wording of the order and the procedural history.
Worldwide freezing orders and third parties
Some orders extend to assets outside England and Wales and may affect banks, companies, trustees or other third parties. Cross-border enforcement raises additional legal and practical issues, and specialist overseas advice may also be required.
Frequently asked questions
Can a freezing injunction be obtained without telling the respondent first?
In genuinely urgent cases the court may hear a without-notice application. That procedure carries demanding duties, including full and frank disclosure and usually a prompt return hearing.
Does a freezing injunction give the claimant ownership of the assets?
No. It restrains dealings with assets; it does not ordinarily transfer ownership or give security over them.
Can I pay ordinary bills from a frozen account?
Only if the order permits it or the court or claimant agrees to an appropriate variation. Read the order before making payments.
What should I send you?
If an order has been served, send the sealed order, application notice, witness evidence and hearing details immediately. If you are considering applying, send the key claim documents and evidence explaining the risk to assets.