Mareva Injunction (Freezing Order) – How Freezing Orders Work in Australian Law

Mareva injunctions, also known as freezing orders or asset preservation orders, are powerful court orders that prevent a party from disposing of or hiding their assets.

In essence, a freezing order "is an order by the Court that the Defendant cannot deal with specific assets up to the amount claimed".

This ensures any judgment in favor of the plaintiff can be satisfied and isn't rendered hollow by the defendant having whisked assets away.

These orders originated from a famous UK case in the 1970s (Mareva Compania Naviera SA v International Bulkcarriers SA), which is why they're often called Mareva orders.

Today, Australian courts use the term "freezing order" in the rules, but the concept remains the same – restraining a potential judgment debtor's assets so they can't be dissipated before the court's process is completed.