Injunctions In Fraud Claims: Should Banks Always Get Their Costs?

Should financial institutions be reimbursed for the costs incurred by assisting victims of fraud?

It is common for a claimant to seek an injunction as part of a legal strategy to recover their property. The two sought most frequently are a Norwich Pharmacal Order ("NPO") and a Freezing Order ("FO"). A NPO requires the respondent to provide information which will assist the applicant in pursuing their claim – normally by identifying the wrongdoer and/or disclosing information necessary to bring a claim. Generally a NPO is available against a party which has become involved in the alleged wrongdoing (innocently or not) but is unlikely to be a defendant at trial. A FO restrains a party from disposing of or dealing with assets and can be obtained against a defendant or a third party to prevent assets being dissipated to frustrate enforcement of a judgment.