Policing A Freezing Order: Why, When And When Not

Introduction

Perhaps one of the greatest risks a claimant faces in large commercial disputes is that a defendant may attempt to frustrate the enforcement of a future judgment, most commonly by hiding or moving assets beyond reach. A freezing order is designed to preserve assets pending the outcome of the main dispute and generally it offers strong protection and reassurance to the claimant. However, this is not always the case, particularly when a defendant does not play “by the book” and is willing to do everything possible to avoid meeting his obligations.

Such situations are increasingly common, especially when a defendant holds assets under sophisticated corporate or trust structures in various offshore jurisdictions or when he holds cash that can be easily alienated. To counter such dishonest behaviour, and in order to give teeth to freezing orders, equity has developed the use of disclosure orders, ancillary to the Mareva injunction, an additional