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When will a court grant a freezing order?

The court has a wide discretion to grant a freezing injunction but will do so only when it considers that such action is just and convenient and the following factors are in place: 

  • The English court must have jurisdiction;
  • The applicant must have a ‘cause of action’ such as deceit or a breach of trust (a counterclaim will also be sufficient) by the other party;
  • There is a good, arguable case – however, they do not need to show that the case will succeed, the court will give due consideration to the strength of any defence;
  • There must be sufficient assets in existence to meet the amount of the claim;
  • There must be a real risk that the person in charge of those assets will dispose of or use them up; and
  • The applicant must provide an undertaking to the court to pay any damages to the other party if it is later shown that the injunction should not have been granted.

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